Consumer Duty sets higher standards for financial services customers

In view of the coming into force of the new Consumer Duty on July 31, 2023, the Financial Conduct Authority (FCA) has published a press statement in this context. Although the statement is primarily addressed at customers of financial market participants, it may be quite beneficial to be reminded of the effective date and the expectations of the FCA in this context.
#### The following is a brief summary of the key expectations of the FCA:
1. Support and Accessibility: Firms should provide helpful and accessible customer support, making it as easy to resolve issues, switch, or cancel a product as it was to purchase it initially.
2. Clear and Timely Information: Firms must offer timely and clear information that can be easily understand, helping customers to make informed and sound financial decisions. Important information should not be hidden in lengthy terms and conditions.
3. Right Products and Fair Value: Financial services firms should offer products and services that meet customers‘ needs and offer fair value. Firms shall refrain from exploiting their customers and / or charge unexpected fees.
4. Honest and Avoiding Harm: Firms should be open and honest with customers, avoiding any actions that could result in (financial) harm to clients.
5. Support in Pursuing Financial Goals: Financial services firms should support customers in pursuing their financial goals.
„The new rules apply to both new and existing products and services currently on sale. For older products that are no longer available, the rules will apply from July 31, 2024.“