In July 2022, the Financial Conduct Authority (FCA) published its final rules and policy statement, 'PS22/9: A new Consumer Duty'. The Consumer Duty sets higher and clearer standards of care that firms must provide to retail customers.

The Consumer Duty forms part of the FCA's transformation to become a more innovative, assertive, and data-led regulator, and is a key part of the FCA's new three-year strategy to improve outcomes for consumers and in markets throughout the UK. The FCA has confirmed it is embedding the Consumer Duty into its approach for authorisation, supervision and enforcement.

This article gives an overview of the key new requirements - and practical considerations - for boards and senior managers when preparing for, and implementing and embedding, the new Consumer Duty into their firms' strategies, governance, leadership and people policies.