Planning for a new Consumer Duty

• United Kingdom

• ESG
• Financial services and markets regulation
• Financial services disputes and investigations
• Financial services
• Financial services - Consumer Duty
• Financial services - Retail finance
• Financial services - Senior Managers and Certification Regime

20-01-2022

As firms plan ahead for 2022, one of the items at the top of their to-do-lists will be planning for the new Consumer Duty. Shortly before Christmas, the FCA published a second consultation on its plans for the new Consumer Duty (CP21/36) which it considers will “fundamentally shift the mindset of firms” and establish an appropriate level of care to consumers. This second Consultation Paper expands on the FCA’s proposals and also sets out feedback to the first Consultation Paper (CP21/13).

Sheldon Mills, the FCA’s executive director of consumers and competition said, “The new duty will drive a change in culture. We expect firms to step up and put consumers at the heart of what they do and we’ll be holding senior managers accountable if they do not. The duty will also help create an environment for healthy competition between firms, encouraging them to be innovative in developing products and services that meet consumers’ needs”.

Firms have until 15 February 2022 to respond to the consultation, with the FCA inviting feedback on the impact of its proposals and on the substance of its draft rules and non-Handbook guidance. The FCA expects to publish the new rules by 31 July 2022 with the implementation period then expected to run until 30 April 2023. There is a lot for firms to do in this relatively short nine month period. Firms will be expected to review their existing and incoming products and services and take actions to fully implement the Consumer Duty.

In this briefing, we clarify what the FCA's proposals are and advise on next steps.

Read the briefing >