What is the Consumer Duty?
The Consumer Duty sets the standard of care that firms should give to customers in retail financial markets.
It sets expectations that can apply flexibly and dynamically to new products, services and business models as they continue to emerge and develop in a changing and increasingly digital environment. So, it better protects consumers from current and new/emerging drivers of harm and gives firms more certainty of our expectations to support innovation, competition and new ways of serving customers.
The Financial Conduct Authority’s (FCA) Consumer Duty, seeks to ensure customers receive these ‘good outcomes’ and that firms provide evidence that these outcomes are being met.
The four outcomes are:
- Governance of Products and Services
- Price and Value
- Consumer Understanding
- Consumer Support