FCA portfolio letter to CFD providers on implementing the Consumer Duty

Article summary

The Financial Conduct Authority (FCA) has published a Dear CEO letter, dated 31 March 2023, for firms supervised in its contracts for difference (CFD) providers portfolio on implementation of the Consumer Duty. The letter follows a previous Dear CEO letter in December 2022 on its wider supervisory strategy for CFD providers. The FCA has started looking at the adequacy of CFD firms’ implementation plans for embedding the Duty and will continue to focus on this as a priority. It adds that it will take action where it sees firms lagging in their preparation to meet the Duty’s requirements ahead of it taking effect on 31 July 2023, and against firms who are materially non-compliant with the Duty after that date. Firms are expected to contact the FCA as soon as possible where they consider they will not be compliant by the July 2023 deadline.