Is Consumer Duty teeing up for something bigger ahead?

The new Consumer Duty feels different

The changes the financial industry is implementing under the new Consumer Duty (‘the Duty’) feels very different to the usual big regulatory change projects we have been used to in previous years.

The FCAs three-year strategy, which the Duty forms part of, is drawing a harder line to put a stop to consumer harm, is shifting prescriptive regulation towards more of an outcomes-based regime and businesses are facing greater responsibility and accountability for ensuring these outcomes are met.

The Duty relies on a significant cultural and behavioural shift, further supported by proposed amendments to the Senior Manager and Certification regime on senior management including board accountability to deliver consistently good outcomes for customers. Changes to governance, data and management information will underpin the new Duty and drive businesses to be proactive, agile, innovative, insightful and mindful of their customers’ needs, support and understanding.

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