The Financial Services Duty of Care Bill 2019 (HL Bill 41)

Regulatory Updates | 29/10/19

This private member’s bill had its first reading in the House of Lords on 29 October 2019. A new section, 137CA will be inserted in the Financial Services and Markets Act 2000 (FSMA) to give the Financial Conduct Authority (FCA) the power to make rules to introduce a duty of care owed by authorised persons to consumers in carrying out regulated activities under FSMA. The meaning of “duty of care” would include an obligation to exercise reasonable care and skill when providing a product or service and “Consumer” has the meaning given in section 2(3) of the Consumer Rights Act 2015. The FCA must make rules in accordance with this section which will come into force no later than six months after the day on which this Act comes into force. The second reading, which is the general debate on all aspects of the Bill, is yet to be scheduled.