Consumer Duty

Consumer Duty sets clearer and higher standards for the culture of firms and the conduct the Financial Conduct Authority (FCA) expects of them. The Duty requires firms to put customers at the heart of their businesses and to offer products and services that are fit for purpose, and which they know represent fair value. The focus is now on the outcomes of the customers’ experience. 

The Consumer Duty introduced three elements which firms have to embed into their end-to-end business practices: 

The Consumer Duty implementation deadline has now arrived. Reaching the 31 July 2023 deadline was the culmination of a great deal of work for financial services firms. The process has been extensive – including initial consultation, planning, preparation and, finally, implementation. The impacts have been felt across every consumer-facing part of the business, from product design to customer engagement and communication, from technology and data to leadership and culture.  

What’s next for the Duty? 

For most firms, Consumer Duty needs to shift to business as usual and also meet the 31 July 2024 deadline for closed books of business. Firms also see the Duty presenting long-term opportunities to drive competitive advantage and differentiation, by putting customers at the heart of their business, ensuring good customer outcomes.

The implementation deadline is an important milestone, but ultimately only one of many on what will be a long-term journey.