The Financial Conduct Authority (FCA) is set to introduce the new consumer duty in the hopes to better protect users of financial services.
The new rules set in place will contribute to tackling harmful practices such as providers of financial services presenting information in a way that exploits consumers’ behavioral biases; selling products or services that do not fit for purpose; or simply providing poor customer support.
The FCA announced that it is focused on driving a fundamental shift in industry mindset by raising standards and helping firms obtain products and services in the correct way the first time round.
The new consumer duty will mean that firms will have to place emphasis on supporting and empowering their clients to make good financial decisions and avoid foreseeable harm throughout the customer relationship.
Firms will be required to provide customers with information that they can understand; offer products and services that are fit for purpose; and provide effective customer service.
A consultation will be open until February 15th 2022 and the FCA expects to confirm any final rule by the end of July 2022.
Since 1992, D E Ball & Co Limited has been an independent business advisory service based in Telford, Shropshire. With their advisors working with businesses in the agriculture, services, construction and retailer sectors, they have a broad span of knowledge to offer. To find out more about D E Ball and the new consumer duty click here: https://www.deball.co.uk/