In 2021, the Financial Conduct Authority (FCA) introduced its new Consumer Duty which they stated “will fundamentally improve how firms serve consumers”.
The duty comes into force today (31 July) for "open" products and services and on 31 July 2024 for "closed" products. The Consumer Duty goes further than the existing regulatory framework, driving a cultural shift to raise standards, improve consumer outcomes and increase trust in financial services. It does this by introducing a new Principle 12 requiring firms to act to "deliver good outcomes for retail consumers", supported by three cross cutting rules to act in good faith, avoid causing foreseeable harm and to enable and support customers to pursue their financial objectives. The...
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