Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 01 OCTOBER 2026

A Consumer Duty Focus On Supervision And Enforcement – What Changes Now That The Consumer Duty Has Teeth?

Burges Salmon LLP
Burges Salmon LLP
Contributor
Burges Salmon LLP

Burges Salmon LLP

Burges Salmon is an ambitious, sustainable and inclusive firm that ensures its clients, people and...

View firm profile
Explore more from Burges Salmon LLP

The FCA has ended its grace period for Consumer Duty compliance and is now actively using supervisory and enforcement powers to ensure firms deliver good consumer outcomes. With 11 open investigations spanning insurance, pensions, wealth management, and other sectors, plus 382 supervisory interventions in the last financial year, regulators are scrutinizing whether firms have truly embedded Consumer Duty frameworks into their operations. Fair value assessments, vulnerability support, and outcomes monitoring

United KingdomFinance and Banking
Kerry Berchem
Kerry Berchem

Summary:

  • The aim of this note is to give an overview of how the FCA is using its supervisory and enforcement powers in the Consumer Duty space.
  • This note also provides an overview of areas of related regulatory focus (fair value, payments, outcomes monitoring, and products and services). 
  • The grace period for firms to embed Consumer Duty has ended and firms should expect that the FCA will now use its supervisory and enforcement powers to drive better consumer outcomes.
  • The first Consumer Duty focused enforcement investigation opened in 2024. There are now 11 open investigations that reference the Consumer Duty and cover theinsurance, pensions, wealth management, consumer investments, peer-to-peer lending and claims management sectors.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

FCA Finalises Cryptoasset Perimeter Guidance Ahead Of The New UK Regime

The Financial Conduct Authority has released comprehensive perimeter guidance for the UK's new regulated cryptoasset activities regime, clarifying when firms will need authorization and how the regulatory framework applies to qualifying cryptoassets and stablecoins. The guidance addresses critical questions about scope, territorial application, and the narrower "by way of business" test that determines which entities fall under the new regulatory requirements.
United KingdomFinance and Banking
Katten
Katten
Article

Cryptoasset Regulation: UK Advances Comprehensive Regime As US CLARITY Act Stalls

The UK's Financial Conduct Authority has finalized comprehensive perimeter guidance for its cryptoasset regime, opening a five-month authorization window for firms, while the US Senate's procedural rejection of the CLARITY Act leaves American digital asset regulation to continue through agency action. This divergence highlights fundamentally different regulatory approaches: a legislatively anchored UK implementation path versus US reliance on existing statutory authorities as Congress debates market structu
United KingdomFinance and Banking
PwC Legal Germany
PwC Legal Germany
Article

The Future Of Islamic Finance: Insights From IFN UK Forum 2026

Islamic finance is experiencing rapid global expansion, with assets approaching US$6tn and record sukuk issuance attracting non-traditional investors. The convergence of Shariah-compliant and sustainable investing is creating new opportunities, while AAOIFI Standard No. 62 and tokenisation developments are reshaping how Islamic finance structures are designed and implemented across international markets.
United KingdomFinance and Banking
Walkers
Walkers
Article

New AIM Rules (August 2026)

The London Stock Exchange has implemented sweeping reforms to the AIM Rules, fundamentally reshaping admission requirements, transaction thresholds, and governance obligations for companies on the Alternative Investment Market. These changes eliminate longstanding requirements like working capital statements and corporate governance codes while introducing new features such as capital access windows and special voting shares, marking the most significant overhaul of AIM regulations in recent years.
United KingdomFinance and Banking
Shoosmiths LLP
Shoosmiths LLP
Article

Investment Management Update - September 2026

The Financial Conduct Authority has released a comprehensive package of regulatory updates and findings covering investment management, wealth management, and consumer protection. Key developments include reforms to MiFID costs and charges disclosures, remuneration code changes, AIFM regime overhauls, and detailed reviews of firms' Consumer Duty compliance, financial crime controls, and governance frameworks.
United KingdomFinance and Banking
Macfarlanes LLP
Macfarlanes LLP
Article

Nearly Out Of PERG-atory – But Not Quite Yet: Good News As The FCA Finalises PERG 18 On Cryptoassets, But With Even More Legal Changes To Come

Cryptoasset firms face a rapidly evolving regulatory landscape as the FCA's authorisation gateway opens on 30 September 2026. With the Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026 laid before Parliament and the FCA's finalised PERG 18 guidance published within 24 hours, firms must navigate significant perimeter changes including new stablecoin payment exclusions.
United KingdomFinance and Banking
Travers Smith LLP
Travers Smith LLP
Article

Modernising UK Payments: HM Treasury’s Proposed Overhaul Of The Payment Services Regime

On 14 July 2026, HM Treasury published its long-awaited consultation on modernising the UK’s payment services and electronic money regulatory framework. The consultation is part of the Government’s National Payments Vision agenda, which aims to ensure that the UK has a trusted, world-leading payments ecosystem delivered on next generation technology, while preserving choice for consumers and businesses.
United KingdomFinance and Banking
A&O Shearman
A&O Shearman
Article

Ten AI Giants, One Regulator And A Lesson For Everyone Else: What The ICO’s Foundation Model Report Really Tells Us

The UK's Information Commissioner's Office has completed its supervision of major AI foundation model developers, revealing significant gaps in data protection practices and setting new expectations for legitimate interests assessments, transparency, and special category data handling. The regulator has now turned its attention to agentic AI systems, warning that autonomy is not an excuse for poor compliance and launching a call for evidence that will shape future regulatory guidance.
United KingdomPrivacy
Burges Salmon LLP
Burges Salmon LLP
Article

Evolution Delivered: What Regulation (EU) 2026/2202 Means For EU261 Reform

The European Union has enacted its most comprehensive overhaul of passenger rights legislation in over twenty years, introducing significant operational changes for airlines while maintaining the core architecture of the existing compensation framework. With implementation required by October 2027, carriers face expanded obligations around automatic reimbursements, rerouting rights, and assistance provisions, alongside new clarity on extraordinary circumstances and claims procedures.
European UnionMedia, Telecoms, IT, Entertainment
Burges Salmon LLP
Burges Salmon LLP
Article

The EU Kids Act: Not Just A Social Media Ban, And Not Just An EU Problem

The European Commission has proposed the EU KIDS Act, a comprehensive regulation that extends far beyond a simple social media ban for under-13s. This ambitious framework introduces tiered age-based restrictions, safety-by-design obligations across digital services including AI chatbots and online games, and mandatory certified age-verification systems. With potential fines reaching 6% of global turnover and enforcement mechanisms piggybacking on existing DSA machinery, organisations offering digital servic
European UnionMedia, Telecoms, IT, Entertainment
Burges Salmon LLP
Burges Salmon LLP
Article

ICO Consults On Draft Guidance On Anonymisation And Pseudonymisation For Research

The Information Commissioner's Office has launched a consultation on draft guidance addressing anonymisation and pseudonymisation for research, archiving and statistical purposes. This guidance provides critical insight into how organisations should apply data minimisation principles in modern research practices, including AI development, trusted research environments, and synthetic data generation.
United KingdomPrivacy
Burges Salmon LLP
Burges Salmon LLP
Article

When A Chatbot Becomes A Search Engine: Lessons From The Commission’s Latest DSA Designations

The European Commission has designated ChatGPT as a Very Large Online Search Engine under the Digital Services Act, marking the first time a generative AI assistant has been classified this way. This designation, alongside Reddit and Roblox being named as Very Large Online Platforms, introduces systemic risk assessment obligations, independent audits, and advertising transparency requirements that most AI products have not previously faced. What does this mean for other AI assistants with web-search capabil
BelgiumTechnology
Burges Salmon LLP
Burges Salmon LLP
Article

Crypto, Front Companies And Sanctions Evasion: The NCA’s $5.2 Million Forfeiture

The National Crime Agency has secured the forfeiture of over $5.2 million from an agricultural trading company following a civil recovery investigation into suspected money laundering and sanctions evasion. The case involved complex international fund flows through multiple jurisdictions, cryptocurrency conversion, and alleged connections to entities later designated under US sanctions for facilitating illicit Iranian oil sales.
United KingdomCriminal Law
Burges Salmon LLP
Burges Salmon LLP
Article

FCA Opens New Criminal Money Laundering Investigation

The Financial Conduct Authority has launched a criminal investigation into Euro Exchange Securities UK Ltd for potential breaches of the Money Laundering Regulations 2017, marking the regulator's first major criminal probe into money laundering offences since 2021. The investigation focuses on alleged failures in risk assessment, customer due diligence, and internal controls between 2020 and 2026, with potential sanctions including imprisonment and unlimited fines.
United KingdomCriminal Law
Burges Salmon LLP
Burges Salmon LLP
Article

Regulating AI In Healthcare: National Commission Sets Out UK Framework

The National Commission into the Regulation of AI in Healthcare has published comprehensive recommendations that are expected to shape the future regulatory framework for AI technologies in UK healthcare. These recommendations address the safe adoption of AI across diagnostics, medical research, and clinical decision-making while establishing safeguards to maintain public confidence. The report introduces a lifecycle approach to regulation, emphasizing ongoing monitoring rather than just initial approval, a
United KingdomFood, Drugs, Healthcare, Life Sciences
Burges Salmon LLP
Burges Salmon LLP
Article

Broad Changes To MHRA Proposed Under UK Health Bill

The UK Government has introduced sweeping reforms to the regulatory framework governing medicines and medical devices through amendments to the Health Bill currently progressing through Parliament. These proposed changes would grant the Secretary of State new powers to establish a licensing regime for medical devices and enable faster regulatory updates in response to scientific and technological advances.
United KingdomFood, Drugs, Healthcare, Life Sciences
Burges Salmon LLP
Burges Salmon LLP
Article

Goodbye To TECH 02/17BL: A New Solvency Based Regime For Dividends?

The UK government has proposed a fundamental shift from complex distributable profits calculations to a streamlined solvency-based regime for determining dividend legality. This consultation explores how companies would simply need to demonstrate that dividend payments won't affect their ability to continue as a going concern, potentially replacing decades of intricate accounting guidance with a more practical approach.
United KingdomCorporate/Commercial Law
Burges Salmon LLP
Burges Salmon LLP