Source · Select Committees · Financial Services Regulation Committee
Recommendation 136
136
The FCA has a broad remit spanning a wide range of retail and wholesale sectors...
Conclusion
The FCA has a broad remit spanning a wide range of retail and wholesale sectors that witnesses suggested has resulted in the over-application of consumer protections to wholesale markets. Retail markets require greater protection for consumers due to discrepancies in the sophistication of the counterparties. As Sir Howard Davies noted: “In wholesale markets, you are aiming to produce a fair contest, whereas in the retail markets you know it is not a fair contest because there is a significant information asymmetry problem between the consumer and the firm.” 207
Government Response
A response document is linked to this report, dated 3 September 2025. Response attribution to this conclusion has not been verified. Read the response document ↗