FCA tells firms to change behaviour ahead of the Consumer Duty

Dec 21, 2022 2:54:22 PM

What has happened?

In December 2022, it was reported that the FCA has begun telling firms to change their behaviour ahead of the Consumer Duty coming into effect for open products in July 2023.

What are they key points?

Speaking to the press recently, the FCA’s director of consumer investments Therese Chambers, stated that the regulator has already opened discussions with some businesses to tell them to change their practices now, ahead of the new rules coming into effect.

She was quoted as saying ‘We are already having conversations with firms that say: “When the consumer duty comes in, I don’t think this is going to be okay, do you?” Firms are completing their implementation plans so, for them, the consumer duty is very front of mind. There is no point engaging in a business practice right now that you are going to have to change significantly in seven months’ time. The FCA will give firms time ‘to get this right’ and it won’t open investigations on 31 July. But if firms don’t change certain damaging behaviour, they will be in our sights pretty early’.

How can we help you?

If you’d like to know more about how we can help you with your Consumer Duty preparations or any other regulatory compliance issues, our specialist team is here to help.

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