Consumer Duty Implementation: Good Practice And Areas For Improvement

Background

On 20 February 2024, the United Kingdom's Financial Conduct Authority ("FCA") published guidance (the "Guidance") on the implementation of the Consumer Duty.

The Consumer Duty came into force for "open" products and services (i.e. new and existing products or services that are open to sale or renewal) on 31 July 2023. While the FCA welcomes the improvements made by many firms to deliver better outcomes for their customers, it notes that some firms are "lagging behind". The FCA has therefore published the Guidance to:

• remind firms of the consumer outcomes required by the Consumer Duty;
• set out recent good practice to deliver these outcomes; and
• highlight areas for improvement where firms have more to do.