CP26/23 in plain English: less duplication, not less responsibility

On 29 June the FCA opened CP26/23, "Consumer Duty: scope and proportionality". The title implies a relaxation - the FCA wants to let FCA-regulated firms rely on each other more, and to avoid scope-creep beyond UK borders - but for estate planning referrals it changes nothing.

What the consultation does

It reduces duplication in the regulated chain. Where several FCA-regulated firms serve the same customer, the consultation proposes clearer "reasonable reliance": each firm responsible for its own activities, without re-checking the others' work. For wholesale and cross-border business, that is a genuine and sensible tidy-up. It closes on 18 September, with final rules expected in Q1 2027.

What it does not do

The new comfort applies inside the FCA-regulated distribution chain - between firms the FCA already oversees. Will-writing is not a regulated activity, so an unregulated Will-writer sits outside that chain, and none of the proposed reliance reaches an estate planning referral. The identification of foreseeable harm in unregulated areas is retained in full - and if anything, the duty to spot and act on an estate planning gap is reinforced.

In one line

It reduces duplication between regulated firms; it does not reduce your responsibility for who you refer estate planning to. The three questions - Will, reviewed in five years, LPA - asked, logged and acted on, remain what discharges the obligation.

Key takeaways

• CP26/23 eases reliance between FCA-regulated firms; closes 18 September
• Unregulated Will-writing sits outside the chain the comfort applies to
• Referral responsibility is unchanged - arguably sharpened

We are responding to CP26/23 as a Consumer Duty Alliance Affiliate and will publish a plain-English summary once filed. For the framework, see the Kinherit Academy.