Background Hope.Harris@th…Fri 04/08/2023 - 09:47
Final Rules & Guidance
On 27 July 2022, the FCA published its Final Rules and Guidance on the New Consumer Duty. The FCA intends the Duty to set higher and clearer standards of consumer protection across financial services and require firms to put their customers' needs first.
The Duty is comprised of three overarching elements:
- A consumer principle: A principle that sets the general standard of behaviour expected by the FCA.
- Cross-cutting rules: Rules requiring firms to act in good faith, avoid causing foreseeable harm, and enable and support customers to pursue their financial objectives.
- Four outcomes: Products and Services; Price and Value; Consumer Understanding; and Consumer Support.
Implementation timeline
The implementation timeline has been confirmed as:
- October 2022: Firms’ boards (or equivalent management body) should have agreed their implementation plans and be able to evidence that they have scrutinised and challenged the plans to ensure they are deliverable and robust to meet the new standards.
- April 2023: Manufacturers to share key information with distributors three months ahead of the implementation deadline.
- 31 July 2023: Duty comes into force for new and existing products or services that are open to sale or renewal.
- 31 July 2024: Duty comes into force for closed book products or services.
