Consumer Duty

Consumer Duty is a regulatory standard introduced by the FCA, fully effective from July 2023 for new products and July 2024 for closed products. It requires FCA-authorised firms to act to deliver good outcomes for retail customers across four areas: products and services, price and value, consumer understanding, and consumer support. It represents a shift from rule-based compliance to an outcomes-based standard.

For consumers, the Duty means firms must design products that genuinely meet customer needs and represent fair value, communicate in a way that customers can understand, and provide support that enables customers to achieve their goals. Firms that fail to meet the standard face FCA enforcement, which can include fines, restrictions, and mandatory remediation payments to affected customers.

In the context of fraud and scams, the Consumer Duty reinforces existing obligations around fraud warnings, suitability assessments, and anti-exploitation practices. Firms that fail to implement adequate fraud controls or that push customers toward unsuitable high-risk products may be in breach of the Duty. The FOS and the FCA both consider whether a firm met Consumer Duty standards when reviewing complaints.