The Financial Conduct Authority (FCA) will expect firms to have its Consumer Duty rules implemented by March 2023, according to an industry briefing on the rules1. The FCA published its Consumer Duty consultation paper in May 2021, setting out its expectations of firms to provide higher standards of care for their consumers1.
The duty consists of three elements: a consumer principle setting the standard of behaviour the FCA expects; cross-cutting rules on how businesses should conduct themselves; and four outcomes covering communications, products and services, customer service, and price and value1.
"The FCA is inviting feedback on their second consultation by 15 February 2022, and plan to publish the policy statement summarising responses and the inclusion of any amendments by 31 July 2022. The FCA will expect firms to have these rules implemented by March 2023."
The briefing describes what firms were doing ahead of the final policy statement, including scoping and impact assessment exercises and the setting up of Consumer Duty project teams1. It says early deep dives had revealed a need for greater focus on outcomes testing and weaknesses in firms' overall control frameworks1. It also notes that the FCA had already engaged with firms on the customer journey, particularly online interactions and the availability of information for customers, though not under the Consumer Duty banner1.
The Consumer Duty sits alongside the FCA's earlier Treating Customers Fairly rules. The FCA's role in setting and enforcing conduct rules for firms is set out in our guide to the Financial Conduct Authority.
Why it matters for households
The duty covers the standards firms must meet when dealing with retail customers across communications, products and services, customer service, and price and value1. The March 2023 implementation date means the rules were expected to be in force for firms by that point, following the policy statement planned for 31 July 20221. The briefing does not set out which specific products or firms are in scope, or what redress customers would have if a firm falls short; those details have not been reported.
What happens next
The second consultation closed on 15 February 20221. The FCA planned to publish a policy statement summarising responses and any amendments by 31 July 20221. Firms were expected to have the rules implemented by March 20231.
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