The Financial Conduct Authority has pledged a return to an outcomes-based regulatory regime post-Brexit, saying that its rules had become too complex and penalised small businesses.

Speaking at a City of London and Cicero event this week, Christopher Woolard, executive director of strategy and competition at the FCA, said the regulator would open a public consultation process aimed at “simplification” for consumers.

The regulator will issue an open invitation for “thoughts and ideas” from regulated firms and their customers.

“Rightly, we don’t know exactly where this conversation will take us,” M...