Financial services consumer duty in force from today

The new consumer duty, setting higher standards of consumer protection in financial services, comes into force today, 31 July. 

According to the Financial Conduct Authority, the duty means that firms should be open and honest, avoid harm, and support the consumer to pursue their financial goals. Consumers should expect: 

• helpful and accessible customer support, to make it as easy to sort out a problem, switch or cancel their product, as it was to buy it in the first place;
• timely and clear information they can understand, so they can make good financial decisions, without having important information buried in lengthy terms and conditions;
• products and services being offered that are right for them, rather than unnecessary or unsuitable products being pushed;
• fair value, with no unexpected costs – though it is still in consumers' interests to shop around;
• firms to consider if they in a vulnerable situation when dealing with them.

The new rules apply to all new and existing products and services that are currently on sale. For older products that are no longer on sale, the rules will apply from 31 July 2024.