FCA Consumer Duty: FSCS welcomes move to enhance consumer protections through a new Consumer Duty
Yesterday’s publication of a new Consumer Duty by the Financial Conduct Authority (FCA) aims to place higher and clearer standards on financial firms to protect consumers from harm. The Financial Services Compensation Scheme (FSCS) welcomes the move to improve consumer protections and will be playing its role in combatting consumer harm and improving consumer outcomes through a data and insights led approach.
Reflecting on the publication of the FCA’s new Consumer Duty, Caroline Rainbird, FSCS’s Chief Executive, said:
"FSCS has long supported the need for introducing a new consumer duty as part of the drive to improve consumer outcomes in financial services. Preventing consumer harm within the financial services sector is a key priority for the regulatory bodies, not only because of the current economic difficulties many consumers are facing but also to arrest the legacy of harm, from bad actors in the financial system, that is still coming to the surface. The FCA’s Consumer Duty is a clear step in the right direction and an example of that priority being taken seriously.
It is now important that the requirements are embedded effectively and efficiently, and the higher standards must be implemented across the sector to help drive out those that are not living up to them.
At FSCS, we are playing our part by using our data to support regulatory action, and to expose bad practices by rogue firms within the financial services sector. Those malpractices tarnish other practitioners and leave financial scars on the people that come to those firms in good faith.”
More detail on the FSCS’s work to support regulatory efforts to tackle the root cause of consumer harm can be found in The balancing act of compensation insights report.
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