Context
At its “Consumer Duty: One year on” webinar (recording here), Sheldon Mills, FCA Executive Director of consumers and competition, delivered a speech reflecting on the first year of Consumer Duty.
Key points to note and next actions
- In considering the impact of the Duty to date, the FCA welcomes the improvements firms have made to deliver better consumer outcomes in the first year of the Duty.
- The FCA has seen new data and metrics developed, and improvements in some cases in how vulnerability is recognised and recorded.
- The FCA will continue to be proportionate in applying the requirements of the Duty, particularly for smaller firms.
- The main focus is on the price and value outcome, but service and understanding are also important elements of ‘value’.
- To support innovation and competitiveness, the outcomes-based nature of the Duty will allow the FCA to streamline its rulebook to support competitiveness and growth, while ensuring good consumer outcomes.
- Following today’s milestone, the FCA will continue to focus on how firms are embedding the Duty, acting to address harm.
- Consumer Duty is not ‘done’ simply because we have reached the final implementation date; it is an ongoing journey for improvement for firms and for the FCA.