The FCA has released its Policy Statement on the Consumer Duty, which it hopes that this will lead to a cultural shift in how firms' approach the development and sale of products and services to customers. The Customer Duty introduces a new Principle, Principle 12, within the FCA's Principles for Businesses which reads "a firm must act to deliver good outcomes for retail customers".
The rules are extensive and the time to plan is now. These are the key dates:
- 31 October 2022: Implementation plan should be approved by the board / executive committee of the firm
- 30 April 2023: Manufacturers review existing products and share information with Distributors
- 31 July 2023: Consumer Duty live for existing and open products and services
- 31 July 2024: Consumer Duty live for closed products and services, that are no longer offered
- 31 July 2024: First annual board attestation
To understand the intricacies of Principle 12, MJ Hudson's Regulatory solutions team have created a helpful Q&A Series.
This memorandum contains important information on the new rules made by the Financial Conduct Authority ("FCA") in the following publications:
- FCA Policy Statement: A new Consumer Duty.
- FCA Finalised Guidance: FG22/5 Final non-Handbook Guidance for firms on the Consumer Duty.
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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.