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The Consumer Duty



  • Why is the FCA considering the introduction of a consumer duty?
  • Scope of the new duty
  • Regulated activities, payment services & e-money
  • Effect on wholesale firms
  • The new Principle and its Location – PRIN 12 and PRIN 2A
  • The effect of not having a private right of action for breach of the duty
  • Effect on Principles 6 and 7


Three Cross-cutting rules

  • Interaction with the four outcomes
  • Good faith
  • Avoid foreseeable harm to customers
  • Enable and support customers to pursue their financial objectives
  • What is not involved


Four Consumer outcomes

  • Products and Services (product governance)
  • Price and value
  • Consumer understanding
  • Customer support


Products and Services (product governance)

  • Defining manufacturer/distributor
  • Joint manufacturing
  • Application to existing products
  • Approval process, monitoring and review
  • Identifying target market
  • Product testing
  • Distribution strategy
  • Distributors
  • Approval and review process
  • Target Market
  • Gathering information from manufacturer
  • Impact on PROD and RPPD


On price and value

  • Defining value
  • Assessing for foreseeable future
  • Product packages
  • Price differentiation – walking
  • Closed and existing products
  • Distributors’ obligations
  • Effect of chains
  • Regular reviews and monitoring
  • Effects on other value assessments in PROD and COLL


On consumer understanding

  • Before, during and after sale
  • General scope
  • The requirement – meet needs, likely to be understood and enable good decision-making
  • Clear, fair, and not misleading
  • Timeliness
  • Testing and monitoring


On customer support

  • Enable customer to use product
  • No unreasonable barriers to switching, claiming or complaining
  • Monitoring
  • Websites


Finally, a little risk management and individual responsibility

  • Firm monitoring and reports to governing body
  • Annual board review
  • New individual COCON rule 6

Get in touch

Contact Adam by e-mail, phone or post at:

E-Mail: or

Mobile: 07900 248150

The Attic, 117 Priory Road, London NW6 3NN.