The FCA has been clear that it expects the Consumer Duty (the Duty) to require a significant shift in how firms approach providing their services, with the aim of setting high standards of consumer protection. The Duty is an outcomes-focussed regulation which will affect every area of a firm's business model.

This Practice Note sets out practical considerations for firms in ensuring their complaints handling processes meet the higher expectations of the Consumer Duty. It also considers the implications for firms which could arise from the Financial Ombudsman Service’s (FOS) interpretation of the Duty and the regulatory risk relating to poor complaints handling. Finally, it touches on professional indemnity insurance (PII) considerations including the challenges for firms in paying proactive redress under the Duty in the absence of a live (or finally determined) complaint or claim.

For information on the main elements of the FCA’s Consumer Duty, see Practice Note: The FCA Consumer Duty—essentials.

For key developments relating to the FCA’s Consumer Duty, see: The FCA Consumer