What's the difference between an FCA consultation paper and a policy statement?
By Tom · Last reviewed · 1 minute read
A consultation paper (CP) sets out changes the FCA is proposing and asks for comments by a closing date, so nothing has changed yet. A policy statement (PS) comes later, confirms the final rules, responds to the feedback and says when the rules take effect.
How a rule change usually happens
- Discussion paper or call for input (sometimes). The FCA asks broad questions before it has firm proposals.
- Consultation paper. The FCA sets out specific proposals, often with draft rules, and a closing date for comments.
- Policy statement. After the consultation closes, the FCA publishes the final rules, explains what it changed in response to feedback and gives the dates the rules take effect.
- The rules apply. The FCA's Handbook is updated, and firms are expected to comply from the date given.
Not every consultation leads to a policy statement. The FCA sometimes drops or changes a proposal after hearing the responses.
Guidance works the same way
Guidance follows a similar pattern. A guidance consultation (GC) proposes guidance, and finalised guidance (FG) is the confirmed version. Guidance explains how the FCA expects existing rules to be met rather than creating new ones.
Which to read closely
For most advice firms, the policy statements that cover your permissions need the most attention, because they mean changes with deadlines. Consultation papers are worth a skim so the final rules don't come as a surprise. My free FCA updates email sorts both by your firm's permissions and notes the dates. There's more in how to keep up with FCA changes.
Questions people ask
Do I have to respond to an FCA consultation?
No, responding is optional. Firms, trade bodies and members of the public can all send comments. It's worth reading the summary of any consultation that covers your work, because it shows what's likely to change.
How long does an FCA consultation stay open?
It varies. Each consultation paper gives its own closing date, usually somewhere between several weeks and three months after it's published.
What does CP26/37 mean?
It's the 37th consultation paper the FCA published in 2026. Policy statements, guidance consultations and finalised guidance are numbered the same way, such as PS26/18 or FG26/11.
When do the new rules apply?
The policy statement says. Firms are often given months to prepare, and some changes come in stages, so note the dates when the policy statement is published.