The Financial Conduct Authority's CEO, Nikhil Rathi, has announced that the Consumer Duty will take precedence in the regulator's business plan for the upcoming year.
The plan includes four primary priorities:
- Implementing the Consumer Duty
- Preventing financial crime
- Preparing financial services for the future
- Strengthening the UK's position in global wholesale markets
The Consumer Duty implementation deadline is the 31st of July and will offer consumers greater protection within retail financial services. Rathi assured that the regulator will continue to prioritise consumers' needs by enhancing their protection in the current challenging economic environment.
With the Consumer Duty at the forefront, the FCA intends to guarantee that firms treat customers fairly and provide them with the necessary information to make informed decisions.
Rathi continues by saying: “The Consumer Duty is a significant shift in our expectations of firms and is particularly important as consumers face squeezed incomes and the rising cost of living.
We are bolstering our resources to ensure the Consumer Duty is embedded effectively within firms and central to their technology. Alongside the Consumer Duty, we are also planning to allocate additional staff dedicated to working with firms as they support consumers struggling with higher costs of living”
Rathi said the FCA will make the Consumer Duty an integral part of its regulatory approach at every stage of the regulatory process. That will include authorisation, policy development, supervision and enforcement.
The regulator plans to work with firms, trade bodies, and other stakeholders to identify examples of good and poor practice during the Consumer Duty implementation period.
Rathi stated that the FCA's ambitious programme for the next year aligns with its three-year strategy published last year, which focuses on achieving better outcomes for consumers and markets.
Here's the FCA's timeline toward full Consumer Duty Compliance:
