The Consumer Duty is a new set of rules from the Financial Conduct Authority (FCA) that sets the standard of care that firms should give customers in retail financial markets. It is designed to ensure that firms act in their customers' best interests and protect them from harm.
The Consumer Duty includes a new Consumer Principle that requires firms to "act to deliver good outcomes for retail customers". This means that firms must consider the needs of their customers when designing and delivering products and services and take steps to prevent harm.
For organisations, the Consumer Duty means that they will need to:
Put the needs of their customers first. This means understanding what customers want and needs and designing and delivering products and services that meet those needs.
Take steps to prevent harm. This means identifying and mitigating the risks that could cause harm to customers, such as financial loss or emotional distress.
Provide clear and accurate information to customers. This means using plain language, avoiding jargon, and ensuring customers understand the risks and costs associated with products and services.
Treat customers fairly. This means avoiding discrimination and ensuring customers are treated equally, regardless of age, gender, race, religion, or other personal characteristics.
Resolve complaints promptly and fairly. This means listening to customers' concerns, investigating them thoroughly, and taking steps to address them.
We are proud to partner with Signal to present this report to you; by downloading the report, you will discover the finding of our survey and the gap between customers perceived understanding of financial communications, versus the reality.
