The next step to consumer safety is being considered by none other than the FCA. What the UK’s financial regulator is aiming for is a strengthening of the retail market by integrating new consumer duties that must be attended by all financial services companies. The British regulator is certain that these consumer duties will greatly benefit the UK retail consumer, who will receive only the best services and products.
These consumer duties are essentially divided into three aspects:
- the broker will have to ensure that it is behaving appropriately towards its clients, also called the consumer principle.
- the broker will also have to avoid putting users into predictable harmful situations, but also encourage and allow users to tackle their financial goals. These are called cross-cutting rules.
- Finally, brokers and other financial firms will have to abide by rules of products, services, price value, customer service, and communication.
Sheldon Mills, FCA Executive Director of consumers and competition commented that these rules will enhance pre-existing ones, and are designed to tackle new and old problems in the financial services market.
As of now, the FCA has just been considering these consumer duties, and as a result has opened a consultation, receiving feedback on the propositions until the end of this year. The new rules will be officially integrated in July 2022, if everything runs smoothly.