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

FAQ

Related Regulations

FSMA Financial Services Act

SM&CR Accountability Regime

UK GDPR Data Protection Act

Stay ahead of risk with Signzy

Explore tools that help you onboard, monitor, and verify with confidence

One Touch KYC

Simplify the Know Your Customer (KYC) process with AI and sophisticated fraud detection algorithms to provide a seamless, efficient, and highly secure user verification.

Identity Verification

Use facial match and liveness checks paired with government ID verification to make sure the person holding the document is the person you're onboarding.

AML Screening

Comprehensive Anti-Money Laundering screening solutions to detect and prevent financial crimes through advanced monitoring and compliance tools.