The FCA has now published its final rules and guidance on its new Consumer Duty (PS22/9 and FG22/5) which are designed to fundamentally shift the mindset of firms in how they deliver for consumers. The implementation of the Consumer Duty is a flagship initiative for the FCA, setting out its expectations of the industry over the next years. The FCA is requiring the industry to put the customer at the heart of what they do and to be able to demonstrate how they are achieving good outcomes for customers. The governance and operational changes expected under the rules should not be underestimated by firms.
Given the far-reaching impact, it is pleasing to see that the FCA listened to the industry and implemented a phased implementation. The Consumer Duty will apply to: (1) all new products and services from 31 July 2023; and (2) closed products and services from 31 July 2024.