PS22/9: A new Consumer Duty – CCTA initial response

Commentary | 27/07/22

It is interesting to see the Consumer Duty policy statement and final guidance out. We will be taking a few days to work through all the materials.

For some of us, this has been the focus for many months, if not years of discussion. Of course, no one can disagree with the general principles and outcomes that we have arrived at and there were some good decisions about the scope or the right of action. Any non-handbook guidance is welcomed, and that has long been one of our appeals.

An early thought from the CCTA, one consistent point we have been pushing throughout is that this can’t be the end of the consultation and discussion around the Duty of Care. If we have learned anything from the last few years of FCA principles-based regulation is that the real work starts now in working out what this means in practice. We have spent a year debating key sentences but now we need the next sentence, the next paragraph, and the next page.

That can’t be just one-way. As I have already said, I value every word that the FCA provides. But this is about practical implementation and that needs firms to be involved to raise the questions and give their perspective. This needs to be the end of the beginning rather than the end of this process. We are happy to be part of that process.

Jason Wassell