The FCA’s Consumer Duty policy (PS22/9) as set out in ‘Principle 12 comes into effect by the end of July 2024.

The new Consumer Duty policy introduces a significant shift in the regulatory landscape, emphasizing firms' responsibility to deliver good outcomes for consumers.

Principle 12, which mandates firms to act to deliver good outcomes for retail clients, effectively integrates Principle 6's requirement for firms to treat customers fairly and Principle 7's directive to communicate with consumers in a way that is clear, fair, and not misleading. By embedding these principles, Principle 12 ensures that firms not only avoid causing foreseeable harm but also actively promote consumers' financial well-being, thereby fostering a higher standard of care and transparency in financial services.

Are you ready? Can you meet the Principle 12 mandate?