FCA’s new Consumer Duty
In July 2023 the Financial Conduct Authority’s (FCA) new Consumer Duty comes into force.
The new Duty sets the standards of care that firms providing financial services should give to customers, higher and clearer standards of consumer protection across financial services and requires firms to put consumers at the heart of their business and focus on delivering good outcomes for customers.
This is more than just treating customers fairly, it means that firms must deliver good outcomes for retail customers.
There are three overarching, cross-cutting rules:
- act in good faith towards customers,
- avoid foreseeable harm to the customer,
- enable and support customers to pursue their financial goals.
What does this mean for financial service providers?
All firms must design products and services that meet the needs of their customers, in the knowledge that they're providing fair value and helping customers achieve their financial goals.
They must communicate and engage with customers so they can make effective, timely informed decisions enabling them to be independent with their actions and decisions.
If your firm needs support to make your services more accessible you can contact our Business Services team for advice.
What does this mean for customers?
For most people, access to financial services is an important part of everyday life however only two in five people with sight loss can manage their finances independently. The FCA's new duty should, with it's focus on enabling and supporting customers, ensure that firms make their services more accessible to everyone.