The Financial Conduct Authority’s (FCA) Consumer Duty regulation is a set of rules that requires financial firms to prioritise their customers’ interest when providing services and offering financial products. This regulation applies to all firms that are authorised and regulated by the FCA and it sets out the principles that these firms must follow when dealing with their customers.
The regulation requires that firms conduct their business with integrity, due skill, diligence and care. They must pay due regard to the interests of their customers and treat them fairly. It operates under a principle of a ‘duty of care’, obligating firms to be proactive in identifying and mitigating any harms which might arise from their services or practices. Financial service providers must provide relevant information in a way that is transparent, allowing their customers to make informed decisions when choosing which financial products may suit them best.
