[INSIGHTS]: Financial Conduct Authority’s Guidance on Consumer Duty in Retail Financial Markets

ABOUT: The Financial Conduct Authority's guidance aims to enhance consumer protection in evolving retail financial markets.
LINK: https://www.fca.org.uk/publication/finalised-guidance/fg22-5.pdf
Key Points and Ideas

The Consumer Duty includes a Consumer Principle, cross-cutting rules, and four key outcomes focused on product governance, price and value, consumer understanding, and support.
It's underpinned by reasonableness, considering the nature of the product or service, customer characteristics, and the firm's role.
Firms must prioritize consumer interests, ensure fair value, clarity in communication, and not exploit consumer vulnerabilities.
The guidance is issued under section 139A of the Financial Services and Markets Act 2000, outlining firms' obligations.
It doesn't replace other applicable laws but complements them, enhancing overall consumer protection.
The Duty applies across retail financial services, with examples illustrating expected and unacceptable behaviors.
Firms a...