Context
The FCA has updated its Consumer Duty – information for firms web page to confirm that from 27 February 2025 it no longer expects firms to have a Consumer Duty Board champion. Following The FCA CEO’s letter to the Prime Minister in January, the FCA has moved to remove the expectation for a Board champion. From this morning, Boards can decide for themselves whether or not to have one.
Key points to note and next actions
- In the Finalised Guidance on the Consumer Duty (FG22/5), the FCA said that it expects firms to have a champion at Board (or equivalent governing body) level to support the Chair and CEO in raising the Duty regularly in all relevant discussions, and challenging the firm’s governing body/management on how it is embedding the Duty and focusing on consumer outcomes.
- Now the Duty is in full effect, the FCA wants to give firms greater flexibility on their ongoing governance arrangements and firms are free to retain the role should they wish to do so.
- At a CII Insurance Institute of London event on 25th February, Matt Brewis (Director of Insurance, FCA) expressed a view that the Consumer Duty Board champion initiative seemed not to have made a significant difference in practice.
- The FCA will take steps to amend references to Board champions in the Finalised Guidance on the Consumer Duty in due course.