The UK’s Financial Conduct Authority (FCA) is changing its approach to market failures, moving away from creating new rules as the default response. CEO Nikhil Rathi stated that not every problem needs big interventions or more rules, linking this change to the post-Brexit regulatory environment and reassessment of EU rules.

Rathi highlighted the importance of the consumer duty and outcomes-based approach, leading to potentially fewer rules in the future. The FCA is also focusing on regulatory modernization, data reporting, compliance burdens, and the fast-moving technology landscape, particularly AI advancements.

Concerns were raised by industry voices about companies being unprepared for looser oversight due to reduced rule-making. CEO Kenny MacAulay of Acting Office warned that firms are not ready for the consequences of deregulation, citing cyber risks, data security, and managing complex IT estates with AI applications as potential challenges.

Read more at Yahoo Finance: FCA CEO Nikhil Rathi signals shift towards fewer new rules