Insights ¦ Final non-Handbook Guidance for firms on the Consumer Duty

Published by: Financial Conduct Authority
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ey Take Aways

The Consumer Duty establishes a proactive, outcome-focused standard requiring firms to prioritise delivering good outcomes for retail customers across the entire product lifecycle.

It comprises a Consumer Principle 12, supported by cross-cutting rules around acting in good faith, avoiding foreseeable harm, and enabling customers to pursue financial objectives.

Firms must identify and comprehensively monitor customer outcomes, analysing data and customer feedback to detect poor outcomes or systemic issues.

Emphasis is placed on acting reasonably, with firms expected to tailor communication, support, and product design to meet the needs of diverse customer segments, including vulnerable groups.

The framework underscores explicit senior management accountability, including regular board reviews and a clear champion to embed the Duty within firm culture and governance.

Firm governance should ...