The regulatory review “seeks to reduce burdens on firms and support growth."

That effectively means some regulatory requirements could be modified or dropped entirely.

Steven Cameron, pensions director at Aegon, said: “It’s right to reflect on whether there are areas of the FCA’s rulebook which are unhelpfully prescriptive or simply no longer needed.”

He pointed out the move was something Labour had said it would ask the FCA to undertake.

The review, which calls for input from the industry, was announced on Monday on the eve of the one year anniversary of the Consumer Duty being implemented on 31 July last year.

Tom Selby, director of public policy at AJ Bell, said: “This period of regulatory self-reflection is welcome, and provides an opportunity to ensure the rules and regulations imposed on firms across various financial services sectors are fit for purpose.”

The call for input will seek views on areas of the FCA’s rulebook which potentially undermine its new outcomes-focused regulatory approach.

Mr Cameron said: “We’re pleased to see the call for input refer to the advice guidance boundary review. Rulebook changes will be needed to make sure individuals can get the help they want, when they need it, at a price they can afford. The current advice guidance boundary has left a ‘support gap’ that needs filled.”

The review effectively turns the Consumer Duty rules back on the regulator, according to Mr Selby.

He said: “The development of reforms to the advice guidance boundary, including the potential for more personalised guidance through ‘Targeted Support’, will require firms to be given flexibility to design guidance interventions based on their understanding of customer behaviour.”

He said the demands of the Consumer Duty on firms to aim for ‘good outcomes’ for customers should reduce the need for overly prescriptive rules.

Mr Selby added: “Instead, businesses will benefit from additional flexibility to deliver propositions that work for their customers, in line with the overarching objective of delivering good outcomes under Consumer Duty.”

Mr Cameron said firms have been embracing the Consumer Duty with its focus on delivering good consumer outcomes. He said: “One area which might benefit from simplifying the rulebook is disclosure. The consumer understanding outcome within the Duty is very relevant here.

“However, there are times when having prescriptive rules to follow can be helpful to firms, or needed for consumer protection. When responding, we need to be careful what we wish for.”

Key FCA documents:

• Call for Input for the Review of FCA retail conduct requirements following introduction of the Consumer Duty. 

• The Secondary International Competitiveness and Growth Objective (SICGO) report (PDF) 

• Insurance competitiveness discussion paper  

• SIGCO Metrics

• Information about the independent Cost Benefit Analysis Panel and the FCA’s framework for analysing the costs and benefits of its policies.