What principles does the FCA's Consumer Duty enforce?

The FCA's Consumer Duty is centered around the principle of delivering good outcomes for retail customers. This concept is critical in ensuring that firms focus on the well-being of their customers, promoting not just compliance with regulations but also adherence to a higher standard of care in the provision of financial products and services.

The intent is to embed a culture within financial services that prioritizes customer interests, requiring firms to consider the specific needs of their retail customers throughout the customer journey—from product design to customer support. Consequently, this principle reinforces the expectation that customers should receive benefit and value from the products purchased, aligning with best practices in consumer protection and responsible selling.

The focus on fair and transparent communication is essential to achieving good outcomes, but it is the overarching goal of delivering such outcomes that is central to the FCA's vision of Consumer Duty.