FCA proposes new Consumer Duty

A new Consumer Duty that would set clearer and higher expectations for firms’ standards of care towards consumers is being proposed by the Financial Conduct Authority (FCA).

The move would require firms to:

• ask themselves what outcomes consumers should be able to expect from their products and services
• act to enable rather than hinder these outcomes
• assess the effectiveness of their actions.

The Consumer Duty would add to the range of regulatory tools used to meet the FCA’s strategic objective of making markets work well. Bringing together the FCA’s consumer protection and competition objectives, it would help create an environment where consumers are better equipped to achieve good outcomes from financial services. To enable this, firms need to ensure that their products and services are fit for purpose and offer fair value, and that their communications and customer service enable consumers to make and act on well-informed decisions.

To find out more about the plans, sign up to the FCA’s webinar on 10 June.