Well, if you’re a consumer, it’s all about you.
You may have heard of the FCA Consumer Duty, but do you know what it means for you?It’s a key piece of regulatory change, which went live in July 2023.
Its aim is to ensure firms provide good customer outcomes, by setting higher standards and encouraging firms to see their products and services, the way customers see them. The FCA Consumer Duty has three main elements: The Consumer Principle, The Cross-Cutting Rules, and The Four Outcomes.
The Consumer Principle requires firms to ‘act to deliver good outcomes for customers'.
The Cross-Cutting Rules, set out how firms should act to deliver good outcomes for customers, by taking all reasonable steps to avoid causing foreseeable harm to consumers, enabling and supporting them to pursue their financial objectives, and acting in good faith.
The Cross-Cutting Rules, under the Consumer Principle, are supported by The Four Outcomes, which set out more detailed rules in key areas of the customer relationship. These are:
- Products and services: Products and services are designed to meet the needs, characteristics and objectives of consumers in a specified target market.
- Price and value: Products and services provide fair value, with a reasonable relationship between the price consumers pay, and the benefit they receive.
- Consumer Understanding: Firms communicate in a way that supports consumer understanding and equips consumers to make effective, timely and properly informed decisions.
- Consumer support: Firms provide support that meets consumers needs throughout the life of the product or service.
The FCA Consumer Duty is a big step forward for consumer protection in the UK. It aims to make sure that financial firms put your interests first.
It's all about making finance fairer and more transparent for everyone. And that's something we’re 100% behind.
V12 Retail Finance, it’s all about you and making sure we put you first.