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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