On 31 July 2023, the United Kingdom's Financial Conduct Authority (FCA) implemented the Consumer Duty final rules for new and existing products and services open to sale or renewal. The implementation period is extended until 31 July 2024 for products and services held in closed books. The rules introduce a new standard of care for regulated firms towards their consumers, and affects regulated firms (including the e-money and payments sector), in addition to consumer organisations and individual consumers and industry groups and trade bodies. The Consumer Duty has two main objectives: consumer protection and the promotion of competition in the interest of consumers. The final rules introduce a Consumer Principle which requires firms to act in the interest of delivering good outcomes for consumers, a requirement which is met by acting in good faith, avoiding foreseeable harm, and supporting consumers in the pursuit of financial objectives. Firms are required to take the specific characteristics of their customers, including any vulnerabilities, into account.
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