IMMEDIATE RELEASE

Money and Mental Health charity respond to FCA’s final “Consumer Duty” guidance

27 July 2022

Today, the Financial Conduct Authority (which regulates financial services) has published its final rules and guidance for the new ‘Consumer Duty’ for firms, which aims to ensure consumers are better protected from harm when using financial services.

The final rules put more emphasis on the treatment of vulnerable customers, and extended the implementation time for firms to July 2023 for new and existing products.

In response, Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said:

“The new Consumer Duty is a major step forward in making sure people are treated fairly when using financial services. We hope it achieves the seismic shift that’s needed within the sector to ensure that the needs of all customers – including those with mental health problems – are properly met by firms.

“That is particularly important at a time when many of us are struggling with rising costs and keeping up with bills. We need to see firms making changes now to protect people through the cost of living crisis, rather than using the FCA’s extended deadline as a reason to take their foot off the gas. We will continue to work with firms to help them meet both the challenges presented by the cost of living crisis, and the regulator’s expectations in the Consumer Duty.

“Ultimately, whether or not the Duty has real impact comes down to enforcement, and we urge the FCA to take rigorous action to ensure that firms meet these rules as they come into force from July 2023.”

ENDS

For any media enquiries, please contact Rachel Fergusson, External Affairs Assistant at Money and Mental Health, on 0742 7689 667 or [email protected]