Consumer Duty

Consumer Duty is part of the a new set of rules that has been developed by the FCA in recent months. The rules have been implemented and designed to create a higher standard of consumer protection in retail markets and to reduce the level of harm to retail consumers. Consumer Duty is due to be put into practice by 30th April 2023.

The FCA themselves has described the implementation of the Consumer Duty rules to be iterative and that they themselves will gain further understanding from firms implementation. According to an FCA statement released, there is no “one size fits all” approach when it comes to the monitoring processes to determine if a firm is compliant with the Consumer Duty requirements set out.

It is very clear that the FCA wishes to raise standards across the board significantly. There are, in areas, uncertainty around the scope of the new rules and their application. Firms have been given ample time to be ready for the changes, meaning failure to comply with Consumer Duty or even breaching the rules could potentially result in severe consequences. With that said, LHI recommends firms that have or expect to have retail customers prepare now. 

LHI can consult with firms to ensure that they are ready by the deadline, please contact us to discuss solutions available to your firm.

For more information please contact info@lhiconsult.com