“Providing customers with the right to take action outside the regulatory framework is a neat way of providing customers with the right to seek redress when the regulatory framework has shortcomings.”
Clare Moriarty, chief executive of Citizens Advice welcomed the news hoping these proposals should help ensure people are protected from the get-go rather than regulation having to play catch-up with poorly-designed products or firms that don’t act in the best interests of their customers.
“They are good news for consumers and firms that already act in their customers’ best interests,” she said.
“The real test will come in how the FCA uses the consumer duty to proactively prevent harm and tackle breaches. This will be particularly key in markets where new products can make it far too easy for consumers to get into difficulty - and much harder for them to escape it.”
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