| Link(s): | Handbook Notice 142 |
Context
The FCA has published Handbook Notice 142, which included Policy Statement details of the ‘Targeted Clarifications of Handbook Materials’ which were part of Consultation Paper CP25/37, published on 9 December 2025. These changes are being made as part of the Consumer Duty Requirements Review and is part of the workplan the FCA announced in its March 2025 Feedback Statement FS25/2.
Key points to note and next actions
The handbook changes of most relevance to UKGI clients are as follows:
- Payment protection insurance (PPI) and packaged bank accounts (PBAs) – the FCA is removing PPI-specific rules on customer eligibility and disclosure, and deleting the PBA-specific suitability of advice and annual eligibility statement requirements. This is on the basis that the Duty and broader ICOBS rules on eligibility and advice provide sufficient protections to ensure firms identify client needs and provide appropriate support and, where relevant, suitable advice. Alongside this the FCA is adding non-product specific guidance on eligibility, further explaining its expectations under Consumer Duty.
- Removing the 12-month minimum review frequency for funeral plans – this is in line with the more flexible approach for non-investment insurance products.
- Product governance requirements in relation to value measures – PROD 4.5 (additional expectations for manufacturers and distributors in relation to value measures data) is to be deleted.
- Updating and removing references to Principles 6 and 7 and ‘Treating Customers Fairly’ – the changes include updating references to Principles 6 and 7 to reflect the scope of their application following the Consumer Duty’s introduction, removing materials from the FCA website related to Principle 6 (including historic guidance relating to the ‘Treating Customers Fairly’ (TCF) initiative), and removing guidance on the Responsibilities of Providers and Distributors for the Fair Treatment of Customers (RPPD). Examples of the publications / web pages to be removed are Treating customers fairly – towards fair outcomes for consumers (2006), Treating customers fairly – guide to management information (2007), Treating customers fairly – culture (2007), and the FCA’s web page ‘Fair treatment of customers’.
- The ‘pricing record retention rule’ at ICOBS 6B.2.57 R – this rule (which requires firms to share pricing governance records with the senior manager responsible for FCA reporting) will be deleted.