The new Consumer Duty is being introduced by the FCA. Final rules and guidance are due to be published in July 2022 and must be implemented by April 2023.
The new Consumer Duty is designed to raise the standard of consumer protection generally.
What is the new Consumer Duty?
The new Consumer Duty states that “a firm must act to deliver good outcomes for retail clients”. What you will notice about the Consumer Duty is that there is a strong focus on taking action - positive action and behaviours are required. It is a new approach, a new mindset, a new way of achieving compliance through positive action, behaviours and outcomes. It is very much linked with the Senior Managers & Certification Regime and the Conduct Rules.
The Consumer Duty is made up of three distinct parts.
- A new Consumer Principle which will be a new addition to the FCA’s Principles for Business.
- This consumer principle is supported by 3 cross-cutting rules; and
- Four outcomes setting out more detailed expectations as to how regulated firms can meet the new Consumer Duty.
To view the full NFDA policy document, please download HERE.