Unpacking the
Consumer Duty

The Consumer Duty is the biggest overhaul of financial regulation since RDR in 2013 and the arrowhead of a regulatory culture shift towards outcomes-focused, proactive regulation where unwanted behaviours can be spotted and dealt with as they happen.

It will almost certainly have some impact on adviser businesses, irrespective of how customer-centred they already are, since it requires a higher standard of proof that adviser firms are delivering good client outcomes.

Check out our four Quick Guides to meeting the Consumer Duty Outcomes.

The Consumer Duty (the ‘Duty’)

The Consumer Principle states that ‘a firm must act to deliver good outcomes for retail customers.’ While many in the advice industry may feel they are already acting this way, the Duty still carries a considerable impact in terms of how firms evidence the fact that they are focusing on consumer outcomes.

FOUR OUTCOMES

PRODUCTS&
SERVICES

PRICE&
VALUE

CONSUMER
UNDERSTANDING

CONSUMER
SUPPORT

Click on the Four Outcomes above to access our quick guides.

* The Cross-Cutting Rules apply across all areas and provide clarity on the standards of conduct the FCA expects under the Consumer Principle. They are designed to help firms interpret how they implement the Four Outcomes.

ACTION: Advisers should start with a gap analysis and impact assessment. For each of the four outcomes, firms must assess whether they are meeting the requirements and whether they have the MI needed to evidence that. This gap analysis will identify the processes that need to be improved and any training needs. Use our quick guides to the four outcomes to understand what the FCA expects and how you can evidence good outcomes for your clients.

More reading

Platform due diligence in the Consumer Duty age

The FCA’s Consumer Duty has significantly altered the nature of platform due diligence for advice firms. A more assertive and data-led FCA now expects advisers to consider a range of foreseeable harms

Unpacking the Consumer Duty

The Consumer Duty is the biggest overhaul of financial regulation since RDR in 2013 and the arrowhead of a regulatory culture shift towards outcomes-focused, proactive regulation.