FCA Consumer Duty Templates

Consumer Duty Compliance

The Consumer Duty (“the Duty”) aims to deliver a higher level of protection and security alongside clearer standards for retail customers. The Duty provides new rules and guidance on the fair treatment of retail customers as well as focusing on product governance and fair value assessments.

Principle 12 has been added to the FCA Handbook under the new Duty rules and states “a firm must act to deliver good outcomes for retail customers”. The new rules also encompass cross-cutting obligations and four consumer outcomes that define the behaviour expected of firms in achieving good consumer outcomes.

There are a large number of new rules and obligations under PRIN 2A, many of which require policies, records and controls to set out a firms’ objectives, processes and monitoring procedures. Those offering retail market products are expected to define good consumer outcomes, monitor those outcomes and have processes in place to take actions where any shortcomings are identified.