The Financial Conduct Authority (“FCA”) has now published its latest policy statement which sets out their plan for a new Consumer Duty. PS22/9: A new Consumer Duty outlines a fundamental shift for UK financial services firms and sets higher and clearer standards of consumer protection.
The Consumer Duty is made up of an overarching principle and new rules firms will have to follow. The FCA believe that the Consumer Duty will ensure consumers receive communications they can understand, products and services that meet their needs and offer fair value, as well receiving the support they need, when they need it.
The Consumer Duty forms part of the FCA’s transformation to becoming a more assertive, outcomes focused and data-led regulator. The FCA is giving firms until July 2023 to implement the new rules for all new and existing products and services. The rules will be extended to closed book products 12 months later, to give firms more time to bring these older products, that are no longer on sale, up to the new standards.
We have put together an extensive look at the Consumer Duty and the FCA’s expectations of firms.