Context
The FCA has published a webpage outlining some key achievements and milestones from the last 12 months, including the introduction of the Consumer Duty, which came into force on 31 July 2023. The FCA has reiterated its commitment to reducing and preventing harm.
Key points to note and next actions
Consumer Duty and help for struggling consumers:
- The FCA took action against insurers providing Guaranteed Asset Protection (GAP) insurance after data revealed that these products were providing poor value to customers. Firms were told to take immediate action to prove customers were getting a fair deal or face further action under the Consumer Duty.
- In July, the FCA also published final guidance for insurance firms on support they should offer customers in financial difficulty, such as forbearance, waiving fees and excesses. The FCA continues to monitor how firms are implementing new rules on insurance pricing.
Tackling online harms:
- In September 2023, the FCA introduced additional screening checks for firms approving marketing for unregulated firms. Firms approving financial marketing for unregulated firms will have to demonstrate they have the necessary skills and expertise to approve adverts. Those signing them off must understand the product, to ensure the promotion is accurate and fairly balances risk and reward.
- As of December 2023, the FCA has removed over 10,000 potentially misleading adverts and sent out 2,243 warnings about unauthorised firms and individuals. Between January and October 2023, the FCA cancelled 1,266 firms that failed to meet its minimum standards for authorisation. This is double the number of firms cancelled in the previous year.
Setting higher standards:
- In September, the FCA together with the Prudential Regulation Authority announced a consultation on proposals to introduce a new regulatory framework on Diversity and Inclusion in the financial sector.
Promoting competition and positive change:
- In October, the FCA published a discussion paper on AI to help assess the benefits and risks of AI to consumers and how it can best support its safe and responsible adoption.