Jack Helyar

The new FCA consumer duty: the interrelationship with regulatory and common law obligations

This article considers the FCA’s proposed consumer duty in financial services, expected to be introduced by 31 July 2022 (the new consumer duty). It concludes that: the extent to which the New Consumer Duty imposes a higher standard than that already contained in FCA Handbook Principles 6 and 7 is especially dependent on interpretation of the Price and Value Outcome; the interrelationship between the New Consumer Duty and existing regulatory and common law obligations poses uncertainty to regulated firms; and there are likely to be differences in the enforcement approach of the FCA, civil courts and the FOS. This article does not cover the interrelationship between the New Consumer Duty and common law contractual obligations. Neither does it cover the overlap between the New Consumer Duty and the Senior Managers and Certification Regime, which aligns senior accountability with certain FCA Handbook rules. Both topics will be analysed in a further article.