When introduced in 2023, the Financial Conduct Authority’s (FCA) Consumer Duty (the Duty) marked a significant shift in the FCA’s regulation of the retail sector, establishing higher FCA expectations for the standard of care which firms must provide consumers. The Duty is part of the FCA’s move towards an outcomes-based approach, driven by concerns that many firms adopted a reactive, ‘tick box’ approach to regulatory requirements. The FCA was dissatisfied with the consumer outcomes delivered under pre-existing requirements in parts of the FCA Handbook such as the Principles for Businesses Sourcebook (PRIN), the Product Intervention and Product Governance Sourcebook (PROD) and the pre-existing client best interest rules contained in the Conduct of Business Sourcebook (COBS) and the Insurance: Conduct of Business Sourcebook (ICOBS). As a result, the FCA expects firms to raise their standards to meet the requirements of the Duty. Key points on the Consumer Duty are as follows: • it came into force on 31 July 2023 for new and existing products and services that are open to sale or renewal and on 31 July 2024 for

This Practice Note considers two impacts of the Financial Conduct Authority’s (FCA) Consumer Duty on claims management companies (CMCs). Firstly, this Practice Note considers how the Consumer Duty applies to CMCs, including how CMCs are within the scope of the Consumer Duty, sectoral considerations in respect of each cross-cutting obligation and each of the four customer outcomes, and how FCA concerns, both historical and present, have translated into the FCA’s expectations for CMCs in meeting the Consumer Duty. Secondly, this Practice Note addresses how CMCs will make use of the Consumer Duty to advance consumer claims. 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 Duty—timeline. Overview and key points for CMCs and the Consumer Duty CMCs are broadly classed as firms or individuals that assist consumers by handling claims for compensation or other benefits. While CMCs are seldom mentioned in the FCA’s consultation

Any firm applying for authorisation or senior manager applying for individual approval with the Financial Conduct Authority (FCA) must demonstrate that they can meet the requirements of the FCA’s Consumer Duty, as the requirements relate to them. This Practice Note sets out the FCA’s expectations of what is required of firms and individuals applying for FCA authorisation, variation of permissions or approval, in order to demonstrate compliance with the Consumer Duty. For practical guidance on the FCA’s Consumer Duty, including sector specific Practice Notes and FCA focus areas, see: Consumer protection and FCA Consumer Duty—overview. Background Firms and individuals applying for authorisation or approval with the FCA must demonstrate that they can comply with the FCA’s rules and guidance at the time of their application and on an ongoing basis. As part of the authorisation or individual approval process, the FCA requires information on a firm’s Consumer Duty policies, processes, systems, controls, people and financial arrangements. Demonstrating compliance with the Consumer Duty forms part of, but does not replace, the FCA’s wider

The Financial Conduct Authority’s (FCA) Consumer Duty (the Duty) came into force on 31 July 2023 for open products, and 31 July 2024 for closed products. The Duty set new standards of protection, requiring firms to act to deliver good outcomes for retail clients. The Duty is proactive, requiring firms to take action to put customers at the heart of their business, to offer products and services which are fit for purpose, and which represent fair value. Such action includes monitoring, assessing, and dealing with claims and complaints. This updated Practice Note considers the implications of the Duty for firms’ approaches to complaints handling, focusing in particular on: • the FCA’s feedback following its 2024 Consumer Duty thematic review on complaints and root cause analysis (RCA), (the 2024 Review); and • implications arising from FG26/2: Good and Poor Practice on identifying and rectifying harm, which, in part, explains the FCA’s expectations as to how firms should use complaints and

This Practice Note considers the implications of the Financial Conduct Authority’s (FCA) Consumer Duty for insurance intermediaries, including measuring fair value of insurance products, the FCA’s expectations for implementation and consideration of a number of specific issues for insurance intermediaries related to scheme policies, placing and producing brokers, claims and renewal processes, broker commissions and potential conflict with insurers. For information on the main elements of the FCA’s Consumer Duty, see Practice Note: The FCA Consumer Duty—essentials. For guidance on the implications of the Consumer Duty for insurers, see Practice Note: The FCA Consumer Duty—implications for insurers. For key developments relating to the FCA’s Consumer Duty, including implementation deadlines, see: The FCA Consumer Duty—timeline. FCA’s reviews into value measures Firms must deliver and assess four outcomes under the Consumer Duty, which includes evaluating price and value of products. The FCA has stated that firms must undertake fair value assessments as a way of demonstrating that the price a consumer pays for a product or service is reasonable compared to the overall benefits they

This Practice Note considers the implications of the Financial Conduct Authority’s (FCA) Consumer Duty for insurers, including consideration of a number of specific issues related to the claims handling process, the calculation and setting of premiums, the suitability of policy wordings and third party involvement. For information on the main elements of the FCA’s Consumer Duty, see Practice Note: The FCA Consumer Duty—essentials. For guidance on the implications of the Consumer Duty for insurance intermediaries, see Practice Note: The FCA Consumer Duty—implications for insurance intermediaries. For key developments relating to the FCA’s Consumer Duty, see: The FCA Consumer Duty—timeline. Claims For insurers, the process for handling claims is likely to be one of the areas which the FCA focuses on the most when assessing insurers’ compliance with the Consumer Duty. This is because, in practice, the event of a claim is where the overall value and benefit of a policy becomes known—customers purchase policies to provide them cover in the event they need to make a claim, and so this process is very much at the heart

This Practice Note considers the implications of the Financial Conduct Authority (FCA)’s Consumer Duty for FCA authorised firms’ outsourced service arrangements and operational systems and controls. It also sets out practical considerations for firms when reviewing their in-scope material outsourcing agreements for compliance with the Duty. The Consumer Duty applies to all regulated firms that have a material influence over, or determine, retail customer outcomes. For information on the main elements of the FCA’s Consumer Duty, see Practice Note: The FCA Consumer Duty—essentials. For information on the requirements for manufacturers and distributors to share information within the distribution chain and with the FCA under the Consumer Duty, see Checklist: The FCA Consumer Duty Checklist—information sharing in the distribution chain. Good practice and poor practice in relation to third parties is set out in: The FCA Consumer Duty Checklist—implementation—Third parties (working across the manufacturing and the distribution chain). For key developments relating to the FCA’s Consumer Duty, see: The FCA Consumer Duty—timeline. For practical guidance relating to outsourcing,

The Financial Conduct Authority’s (FCA) Consumer Duty sets a high standard of care that firms must provide to their retail customers. The Duty has applied to new and existing products and services that are open to sale (or renewal) from July 2023 and to products and services held in closed books from July 2024. The FCA continues to publish information to assist firms in implementing and embedding Consumer Duty requirements. This timeline sets out publications and developments relating to the Consumer Duty.. The Duty comprises a set of high-level, outcomes-focused requirements that apply to firms operating in retail markets for regulated financial services and products. This includes all firms involved in the creation, provision, operation, marketing, and distribution of products and services sold to retail customers—regardless of whether a direct customer relationship exists between the firm and the end customer. For further information on the FCA’s Consumer Duty, including its constituent elements, see Practice Note: The FCA Consumer Duty—essentials and checklists: The FCA Consumer Duty Checklist—implementation and The FCA Consumer Duty Checklist—information sharing in the distribution chain.

This Practice Note is archived and is no longer maintained. For information on the powers of the Financial Conduct Authority to prosecute criminal offences, see Practice Note: FCA prosecution of criminal offences—essentials. The Financial Services Act 2012 (FSA 2012) significantly altered the regulatory landscape for financial services in the UK by, inter alia, introducing the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), which took over from the Financial Services Authority (FSA). These regulators have complementary but different roles. This Practice Note provides an introduction to the role of FCA in regards to financial crime. Further information generally can be found in the following subtopics: • FCA investigations and enforcement—overview • FCA investigations and enforcement—overview • UK regulators—financial services—overview, and • FCA and PRA investigations, enforcement and discipline—overview What is the FCA's objective in so far as tackling financial crime is concerned? In contrast to its predecessor, the FSA, which had a number of regulatory objectives (regulating financial crime was one), FCA has a single strategic objective of ensuring that markets function

The Financial Conduct Authority (FCA) has published a webpage update on investigation opening criteria. The FCA added additional information on ‘co-operation’, ‘other authorities with an interest’, and ‘joint investigations with the PRA’.

This Practice Note provides an overview of the Financial Conduct Authority’s (FCA) Asset Management Market Study, which took place between November 2015 and June 2017. It looks at the background to the study, its key findings, the remedies proposed by the FCA to address problems found during the study, and the developments in implementing those remedies since the FCA produced its final report. Background to the study The FCA published the terms of reference for its Asset Management Market Study (AMMS) on 18 November 2015 (see also FCA’s dedicated AMMS webpage). In the terms of reference, the FCA highlighted the large amount of assets under management in the UK (around £6.6trn in 2014–15) and the important role of asset managers in bringing together potential investors and companies or governments needing capital for investment, expansion or funding their ongoing operations. The FCA also flagged that, given the significant size of the asset management sector and its impact on consumers whether direct (eg through pension funds) or indirect (through insurance premiums), it is essential that competition

This one minute guide provides a condensed summary of the key requirements of the UK Sustainability Disclosure Requirements (SDR) and Labelling regime. Following its October 2022 consultation (CP 22/20), the Financial Conduct Authority (FCA) published its response and final SDR rules in its Policy Statement (PS 23/16) on 28 November 2023. In April 2024, the FCA issued final guidance on the new anti-greenwashing rule (FG 24/3). For background information, see News: FCA confirms new sustainability disclosure and labelling regime, LNB News 28/11/2023 67 and News Analysis: FCA sets sustainability disclosure rules for investments. For general information on sustainable finance and environmental, social and governance (ESG) issues relevant to the financial services sector, see: Sustainable finance and ESG—overview. For information on the FCA’s priority areas in relation to sustainable finance and ESG, see Practice Note: Sustainable finance and ESG in the UK financial sector—FCA’s priority areas. What is SDR? The UK’s SDR is a set of requirements covering: • a