Consumer Duty is a standard introduced by the Financial Conduct Authority, in the UK, intended to improve Consumer protection for financial-services firms in the UK. [1] The changes were announced in 2021 and officially came into force on 31 July 2023. [2] The Consumer Duty has been described as the 'biggest overhaul for the UK's financial services industry in 20 years'. [3]
The new rule establishes a "Consumer Principle"; firms must "act to deliver good outcomes for retail customers". [4] Affected firms should review their products and their customer journeys. This also requires effective anti-fraud controls. [5]
Financial Services companies were warned that if any evidence was found of risk of harm to the consumer, this could lead to “robust action such as interventions or investigations, along with possible disciplinary sanctions”. [6] The UK's Treasury select committee said it would scrutinise how banks comply to the rules heavily. [7]
There have been concerns that these requirements place an undue burden on smaller firms. [8]
Consumer Duty is a standard introduced by the Financial Conduct Authority, in the UK, intended to improve Consumer protection for financial-services firms in the UK. [1] The changes were announced in 2021 and officially came into force on 31 July 2023. [2] The Consumer Duty has been described as the 'biggest overhaul for the UK's financial services industry in 20 years'. [3]
The new rule establishes a "Consumer Principle"; firms must "act to deliver good outcomes for retail customers". [4] Affected firms should review their products and their customer journeys. This also requires effective anti-fraud controls. [5]
Financial Services companies were warned that if any evidence was found of risk of harm to the consumer, this could lead to “robust action such as interventions or investigations, along with possible disciplinary sanctions”. [6] The UK's Treasury select committee said it would scrutinise how banks comply to the rules heavily. [7]
There have been concerns that these requirements place an undue burden on smaller firms. [8]