FCA- Approach to Consumers

Last week the Financial Conduct Authority (FCA) published its Approach to Consumers documents.
The document sets out:
  • The FCA vision for well-functioning markets that work for consumers;
  • The relevant regulatory and legal framework;
  • When and how the FCA will act to protect consumers;
  • FCA policy positions on key issues; and
  • The FCA strategy for ensuring its consumer protection objective is taken forward with the greatest impact.
In response to the FCA consultation on its Approach to consumers, some stakeholders raised concerns that the current regulatory framework does not provide adequate protection for consumers. There were calls for the introduction of a ‘Duty of Care’ on firms when dealing with consumers.
In response to those comments, the FCA published a discussion paper alongside the Approach document. The aim of the discussion paper is to help the FCA understand whether there is a gap in the regulatory and legal framework, or the way it is applied in practice, that could be addressed by introducing a New Duty of Care. The FCA is asking for comments on the discussion paper by 2nd November 2018.
The FCA also plans to consult (in early 2019) on guidance for firms on the identification and treatment of vulnerable consumers.
These documents will be of interest to all FCA regulated firms.