The Financial Conduct Authority (FCA) previously announced that they are introducing a new Consumer Duty to set higher standards and enhance consumer protection across financial services. The FCA has now set out the new rules firms will need to follow by 31 July 2023.
It is a business’s responsibility to comply with these rules and make sure they have processes in place to meet those that apply to the products they sell.
There are 5 milestones to prepare for the new rules to take effect and the FCA has a Consumer Duty | FCA section on their website with key information, publications and webinars.
The new Consumer Duty rules will set new rules on the standard of care for customers, including:
- A new Consumer Principle that requires firms to act to deliver good outcomes for retail customers.
- Overarching rules and four outcomes that represent key elements of the firm-to-consumer relationship which are instrumental in helping to drive good outcomes for customers.
These outcomes are grouped under: Consumer understanding, consumer support, product and services and price and value.