Financial Conduct Authority  

How to start preparing for the new consumer duty 

The implications of getting it wrong

The FCA has dropped from its proposals the idea of a private right of action, which would have enabled consumers to take legal action against businesses in breach of the new rules. 

However, compliance with the consumer duty will become central to the FCA’s authorisation, supervision, policy and enforcement processes, and the FCA positions the duty as fundamental to its “adaptable, innovative and assertive” approach to supervision.

The FCA has also indicated that it will work closely with the Financial Ombudsman Service to ensure the Ombudsman understands its expectations of businesses. 

What comes next?

The FCA’s latest consultation (CP21/36) runs until February 15 2022, and the FCA expects to create final rules by the end of July 2022. 

This means it will be a relatively tight nine-month implementation deadline, set at April 30 2023. 

Robin Penfold is a partner and Sara Evans is a senior professional support lawyer at UK law firm TLT