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FCA Consumer Duty Regulation

United Kingdom

2022

Consumer Protection

Overview

The FCA Consumer Duty, enforced from July 31, 2023, introduces a new standard of care for financial services firms in the UK. It requires firms to put consumers at the heart of their decision-making by delivering products and services that meet customer needs, offer fair value, and support informed choices.
The duty applies to all banks, insurers, investment firms, credit providers, payment service firms, and others involved in the retail distribution chain. It emphasizes four outcomes: product and service suitability, price and value, consumer understanding, and support. Firms must evidence how they are meeting these obligations through oversight, automating compliance and data monitoring.

Key Obligations

Design products and services that meet the needs of target customers
Offer fair value and avoid exploitative pricing structures
Ensure communications are clear and support customer understanding

Provide helpful and responsive customer support throughout the product lifecycle
Monitor and assess outcomes using data and take corrective action where needed
Embed the Duty into governance and senior manager responsibilities

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Related Regulations

FSMA Financial Services Act

SM&CR Accountability Regime

UK GDPR Data Protection Act

FAQ

Who must comply with the Consumer Duty?

All FCA-regulated firms providing products or services to UK retail customers, including manufacturers and distributors.

What are the four key outcomes?

Product and service suitability, price and value, consumer understanding, and customer support.

Does the Duty apply to existing products?

Yes. Existing open products must comply from July 31, 2023. Closed products will follow from July 31, 2024.

What are the consequences of non-compliance?

Firms may face FCA enforcement actions, including fines and supervisory interventions.