FCA Consumer Duty

The Consumer Duty is the UK Financial Conduct Authority's standard of conduct for firms that serve retail customers, set out in policy statement PS22/9, published on 27 July 2022. It came into force on 31 July 2023 for products and services open to sale or renewal, and on 31 July 2024 for closed products and services.

The Duty has three layers:

• A Consumer Principle: a firm must act to deliver good outcomes for retail customers.
• Cross-cutting rules that set out what the Principle expects: act in good faith, avoid causing foreseeable harm, and enable and support customers to pursue their financial objectives.
• Four outcomes that firms must be able to evidence: products and services, price and value, consumer understanding, and consumer support.

It also reaches governance. Under PRIN 2A.8, a firm's governing body reviews at least once a year whether the firm is delivering good outcomes for customers and whether its future business strategy is consistent with the Duty. That makes outcome data, and the actions taken when it shows harm, part of the firm's compliance record.

The Duty is still moving. CP26/23, published on 29 June 2026 with comments closing on 18 September 2026, proposes to take business with non-UK customers out of scope, clarify how firms in a distribution chain can rely on each other, and allow more proportionate application according to each firm's role. The FCA expects to publish final rules in Q1 2027.

Much of the FCA's Consumer Duty messaging arrives in reviews, Dear CEO letters and consultation papers rather than in new rules, which is why firms track it as part of their horizon scanning. Our article on FCA horizon scanning expectations covers the evidence supervisors ask for.

This entry is general information, not legal advice.