The latest news from NCVO
The Financial Conduct Authority (FCA) has introduced a new requirement called Consumer Duty.
The Duty sets higher and clearer standards of consumer protection across financial services. Banks and other financial institutions (often called ‘firms’) have been busy putting plans in place to comply with the new rules, which came into effect on 31 July.
Here’s our breakdown of what to expect.
Details of the new rules
Consumer Duty requires firms to ensure ‘good outcomes’ for all customers. They also need to provide data and evidence to show they’re achieving these good outcomes.
The FCA’s guidance (pdf, 1.1MB) is clear on what ‘good outcomes’ are. Firms should provide customers with the following.
- Products and services that:
- meet their needs
- offer fair value
- help them achieve their financial objectives
- do not cause them harm.
- Communications that they can understand and that enable them to make effective, timely and informed decisions.
- Helpful customer support that’s easy to access.