FCA publishes first major review of the Consumer Duty
The regulator's first comprehensive look at how firms are applying the Consumer Duty highlighted progress on price and value but ongoing weaknesses in vulnerable customer support.
By Money Guide editorial team
Published:
The Financial Conduct Authority has published its first comprehensive review of how firms are applying the Consumer Duty, the cross-sector framework that came into force in July 2023 for new and renewing products.
The review found broad progress on the 'price and value' outcome, with some firms cutting fees, simplifying tariffs or improving rates following internal fair-value assessments. Areas singled out for further work include support for customers in vulnerable circumstances, clarity in cancellation processes, and the treatment of long-standing customers compared to new ones.
For consumers, the practical effect is a stronger basis for complaints when a firm fails to act in their interests — for example, leaving savers on legacy accounts paying significantly less than equivalent new ones.
Complaints can be made free of charge through the firm's own process and escalated to the Financial Ombudsman Service if unresolved after eight weeks.