PS22/9: A new Consumer Duty. New @FCA rules setting out higher and clearer standards, #Insurance #insurers, I will be holding you to these. @motorclaimguru @nbra @bodyshopmag

Read PS22/9 [PDF]

Read FG22/5 [PDF]

What we are changing

We are introducing rules comprising:

• A new Consumer Principle that requires firms to act to deliver good outcomes for retail customers.
• Cross-cutting rules providing greater clarity on our expectations under the new Principle and helping firms interpret the four outcomes (see below).
• Rules relating to the four outcomes we want to see under the Consumer Duty. These represent key elements of the firm-consumer relationship which are instrumental in helping to drive good outcomes for customers.

These outcomes relate to:

• products and services
• price and value
• consumer understanding
• consumer support

Our rules require firms to consider the needs, characteristics and objectives of their customers – including those with characteristics of vulnerability – and how they behave, at every stage of the customer journey. As well as acting to deliver good customer outcomes, firms will need to understand and evidence whether those outcomes are being met.

Who this affects

This policy and guidance is likely to interest:

• regulated firms, including those in the e-money and payments sector
• consumer organisations and individual consumers
• industry groups/trade bodies
• policy makers and regulatory bodies
• industry experts and commentators
• academics and think tanks

Next steps

The rules and guidance we are introducing come into force on a phased basis:

• for new and existing products or services that are open to sale or renewal the rules come into force on 31 July 2023
• for closed products or services, the rules come into force on 31 July 2024