The Definition
The Duty means consumers should get communications they can understand, products and services
that meet their needs and offer fair value, and they get the customer support they need, when they
need it.
The Duty Expanded
The Consumer Duty is a package of measures comprised of:
- A new Consumer Principle (Principle 12) that provides a high-level expectation of conduct
and associated outcomes. - A set of overarching cross-cutting rules which develop and amplify the standards of conduct that the FCA expects under the Consumer Principle.
- The four outcomes, which are a suite of rules and guidance setting more detailed expectations for a firm's conduct according to the four specific outcomes that represent
the key elements of the firm and its consumer relationships.
The Four Outcomes
The four outcomes represent the key elements of the firm-customer relationship. The behaviour and
actions of firms in relation to each of these outcomes are instrumental in enabling consumers to
meet their financial needs and improve their financial wellbeing.
- Products and services
- Price and value
- Consumer understanding
- Consumer support
The Timing
The main rules will come into force on 31 July 2023 for existing products and services, meaning
those available for sale to new customers, or available for renewal by existing customers. The
immediate deadline firms must consider is 30 April 2023, when they must have finished their review
of existing open products.
