The Financial Conduct Authority (FCA) has announced it will roll out a new Consumer Duty.
In Brief:
Consumer Duty will apply to banks and financial institutions.
It will require them to strengthen their consumer protection efforts.
They must detail policies in a manner that is clearer and easier to understand, eliminate additional charges and make switching easier.
What does this mean?
The roll-out of the new Consumer Duty will mean that banks need to adapt a lot of their services to make things clearer and easier to understand for consumers, while ensuring their interests are protected. The Duty has moved through consultation stages and the FCA says that in the current economic climate it is important for banks to help customers make “good financial decisions”. The aim of the Duty is to “raise the bar” in preventing consumer harm and promotion competition in financial services.
