FCA opens consultation on simplifying consumer credit financial promotions rules

The Financial Conduct Authority (FCA) published consultation paper CP26/15 on 29 April 2026, proposing changes to simplify its financial promotions rules for consumer credit in CONC 3 and opening a discussion on how cost of credit information is presented to consumers¹. The consultation closes on 17 June 2026¹.

The FCA said it proposes to remove provisions in CONC 3 that "may be overly prescriptive or outdated", relying instead on firms delivering the consumer understanding outcome under the Consumer Duty¹.

"We are consulting on proposed changes to simplify our financial promotions rules in CONC 3 and opening a discussion on ways to improve how cost of credit information is presented to consumers."

FCA, CP26/15¹

The paper discusses three areas of the cost disclosure rules and seeks views on them¹:

Area under discussion	Question asked
Representative APR	The extent to which its disclosure supports consumer understanding of the cost of credit, and what alternatives might be considered
Representative example	Whether its mandatory inclusion when triggered supports consumer understanding
51% threshold	Whether the current 51% threshold for determining a Representative APR remains appropriate

The FCA said the review follows a Call for Input issued after the Consumer Duty came into force in July 2024, in which it asked firms whether any requirements were duplicative or could be simplified¹. Feedback showed respondents considered some financial promotion rules for consumer credit overly complex or outdated, and the FCA committed in its Feedback Statement FS25/2 to review them¹. The stated aims include addressing firms' concerns about the length and complexity of the rules, removing outdated requirements, and giving firms greater discretion to tailor customer-facing communications¹.

The document is addressed to lenders, brokers and others undertaking credit-related activities, industry groups and trade bodies, and consumer groups¹. The FCA said it will also be of interest to advertisers and communication channels for credit products, including social media platforms, and to consumers who use credit products¹.

Why it matters for households

The rules in CONC 3 govern what adverts and other promotions for consumer credit, such as loans, must tell people. The consultation concerns the information consumers see when credit is marketed, including the Representative APR and the representative example that must appear when certain triggers are met¹. The FCA is asking whether the current 51% threshold for determining a Representative APR remains appropriate, and whether the mandatory representative example supports understanding¹. Any changes would follow the consultation and are not in force; the paper sets out proposals and discussion questions only¹. The FCA has not reported a date for publishing its response or any final rules¹.

What happens next

The consultation opened on 29 April 2026 and closes on 17 June 2026¹. Responses can be submitted through the FCA's online form or in writing to the Consumer Finance Policy Team, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN¹. The consultations guide explains how new rules are made and how to respond.

Sources1 cited