Context
As anticipated the FCA has issued a press release and published its Policy Statement 22/9 A New Consumer Duty and FG 22/5.
Key points to note
- The Consumer Duty sets higher and more defined standards of consumer protection across financial services sectors and requires firms to put their customers’ needs first.
- The Duty is built upon a customer centric foundation and the overarching principle that ‘a firm must act to deliver good outcomes for retail customers’; including new Rules which firms will have to follow. The Duty will mean that consumers should receive clear communications they can understand, products and services that truly meet their needs and offer fair value, and get the customer support they need, when they need it.
- The Policy Statement and finalised Guidance provide clarity on the FCA’s expectations of firms to concentrate on what their customers need.
- The FCA will work with firms during the implementation period, including hosting a series of industry events, to ensure that firms are implementing the Duty effectively and in line with the FCA’s expectations.
Next actions
For new and existing products or services that are open to sale or renewal the rules come into force on 31st July 2023. For closed products or services the rules come into force on 31st July 2024.