Understanding Consumer Duty
Everything you need to know about Consumer Duty, all in one place.
Cross-cutting rules
The purpose of the cross-cutting rules is to provide guidance on the new Principle 12. The cross-cutting rules set out how firms should act (proactively
The new consumer principle
As part of the new Consumer Duty rules, a new ‘Principle 12’ has been added to the FCA Handbook. It states that: “A firm must
The Consumer Duty in a nutshell
The Consumer Duty is an outcome-focused[1] set of rules designed to set the standard of care that firms should give to customers in retail financial
Proportionality under the Consumer Duty
The Consumer Duty applies proportionately, based on what is reasonable in the circumstances.
The Consumer Duty and vulnerable customers
The FCA’s Financial Lives 2020 survey showed that in February 2020 46% of UK adults (24.1 million people) had characteristics of vulnerability.
How does the Consumer Duty interact with the Senior Managers & Certification Regime?
The Senior Managers & Certification Regime (SM&CR) as well as the Senior Manager Conduct Rules establish clear senior management responsibility for complying with the requirements
Consumer Duty – monitoring and governance
A key part of the Consumer Duty is that firms assess, test, understand and are able to evidence the outcomes their customers are receiving. Without
Cross-cutting rules
The purpose of the cross-cutting rules is to provide guidance on the new Principle 12.
New Consumer Principle
As part of the new Consumer Duty rules, a new ‘Principle 12’ will be added to the FCA Handbook.
