The new Consumer Duty aims to bring about a fairer, more consumer-focused and level playing field, whereby firms prioritise the consumer’s needs above all else, ensuring good customer outcomes.
Firms need to consider the diverse needs of their customers, including those in vulnerable circumstances, and make allowances where necessary. The new regulations ensure consumers get products and services which are fit for purpose, provide fair value, that they understand how to use and are supported in doing so at every stage of the product/service lifecycle.
In essence, the regulator wants to see firms putting themselves in their customers’ shoes, asking themselves questions such as ‘would I be happy to be treated in the way my firm treats its customers?’, or ‘would I recommend my firm’s products and services to my friends and family?’.
27 July 2022: FCA publishes consumer duty rules and guidance
By 31 October 2022: Management must agree plan...
By 30 April 2023: Lenders (Manufacturers) should have completed all the reviews necessary to meet the outcome rules for their existing open products and services.
31 July 2023: Implementation deadline for new and existing products or services that are open to sale or renewal.
31 July 2024: Implementation deadline for closed products or services.