The Financial Conduct Authority has published Consultation Paper CP26/15, proposing simplified rules for financial promotions within CONC 3.
The reform represents a significant shift in how credit products can be marketed to consumers, placing greater emphasis on outcomes-based standards under the Consumer Duty framework.
Key Proposals
The FCA is exploring several important changes:
- Simplified disclosure requirements: Moving away from prescriptive formatting rules toward principles-based communication that genuinely helps consumers understand the cost of borrowing.
- "Pounds and pence" disclosures: Alternative formats that show actual monetary costs rather than relying solely on APR figures, which research suggests many consumers find difficult to interpret.
- Digital-first approach: Updated rules that better accommodate how financial products are promoted through social media, apps, and online platforms.
Impact on Banks
Bank of the West welcomes these proposals as an opportunity to enhance transparency. Our commitment to clear, honest communication about our products aligns closely with the FCA's Consumer Duty objectives.
We will be participating in the consultation process and look forward to implementing changes that make financial information more accessible and useful for our customers.
Consultation Timeline
The consultation period runs until 31 October 2026, with final rules expected in Q1 2027. Implementation is anticipated for mid-2027.