Supporting you with the Consumer Duty
What is the Consumer Duty?
The Duty places an increased emphasis on firms consistently putting the needs of their customers at the centre of their businesses. It is a package of measures comprising three parts:
- a new Consumer Principle provides an overarching standard of conduct the FCA expects from firms. Firms must ‘act to deliver good outcomes for retail customers’
- a set of cross-cutting rules that require three key behaviours from firms when acting to deliver these outcomes
- four outcomes setting out more detailed rules in key areas of the firm-customer relationship
Timeline for implementation
What are your firm’s obligations under Consumer Duty?
FCA publications
Final rules, along with practical guidance to help firms meet those rules, were published in July 2022:
Dear CEO/Director letter – January 2023
Most recently the FCA sent a letter to the CEOs/Directors of intermediaries reminding them of the implementation timeline, plus their expectations around implementation
FCA Consumer Duty implementation plans – January 2023
They also published feedback from their review into how firms are planning to implement the Duty, highlighting areas for firms to focus upon
Countdown to Consumer Duty, a speech by Sheldon Mills – May 2023
Sheldon Mills, Executive Director, Consumers and Competition at the FCA gave a speech outlining the questions firms should be asking themselves ahead of the implementation deadline plus what firms can expect from the FCA from 31 July
FCA findings of review into fair value assessments – May 2023
The FCA shared its observations of its review into fair value assessments with some suggested areas for focus, including best practices
Consumer Duty firm survey - June 2023
The FCA commissioned Ipsos UK to undertake an anonymous survey of 1,230 firms in some of the sectors in scope of the Consumer Duty to help them understand how prepared firms were in meeting the implementation deadline of 31 July 2023, and how they could support firms to embed the Duty effectively
Consumer Duty – Not once and done
The FCA’s Director of Cross Cutting Policy and Strategy, delivered a speech on the 1st November marking three months since Consumer Duty came into force.
Firms also need to take into account the FCA’s Guidance for firms on the fair treatment of vulnerable customers (FG21/1) when considering how to comply with the Duty.
Inside FCA podcasts​
This series of podcasts covers each of the four Consumer Duty outcomes plus the FCA’s expectations around the 30 April deadline.
For the latest information and guidance from the FCA visit www.fca.org.uk/firms/consumer-duty
Supporting you to prepare
- the principles of the Consumer Duty regulation
- what you should consider as key in assessing ‘value’
- the importance of identifying different client target markets
- the key areas to consider when implementing Consumer Duty in a financial advice firm
Are you ready for the Consumer Duty?
Consumer Duty toolkit
A set of materials to help you with implementation.
Consumer Duty: The next steps
We hosted a webinar on 6 December 2023 to help firms understand our expectations now the Duty is in force. This focused on the following areas:
The webinar will be of interest to regulated firms, trade associations, professional bodies and compliance consultants.
Target market assessment and assessment of value
To help you assess whether one of our funds is potentially suitable for your client, and represents fair value, you can view these summary spreadsheets:
Want to learn more?
The FCA Consumer Duty
Key takeaways:
- understand the fundamental principles of the new Consumer Duty regulation
- explain the core concepts of the Consumer Duty cross cutting rules
- review established current documents/policies/templates in relation to the Consumer Duty regulation
FCA Consumer Duty: Feedback on firms’ implementation plans
Key takeaways:
- understand the FCA’s views on the Consumer Duty implementation plans of large firms
- identify the key areas of Consumer Duty that the FCA believe firms should focus their attention on in the remaining period for implementation
Consumer Duty and the CT Universal MAP ranges
*Columbia Threadneedle Investments includes all data from the following entities:
Threadneedle Management Luxembourg S.A.
Threadneedle Investment Services Limited
Threadneedle Pensions Limited
Columbia Threadneedle Management Limited
Columbia Threadneedle Luxembourg S.A.
Thames River Capital LLP
Columbia Threadneedle (EM) Investments Limited
Columbia Threadneedle Investment Business Limited
Columbia Threadneedle Multi-Manager LLP
Columbia Threadneedle Managers Limited
**Threadneedle Investment Services Limited includes funds in the following ranges:
Columbia Threadneedle Investment Funds (UK) ICVC
Columbia Threadneedle Opportunity Investment Funds (UK) ICVC
Columbia Threadneedle Specialist Investment Funds (UK) ICVC
CT UK Property Authorised Investment Fund
CT UK Property Authorised Trust
***Columbia Threadneedle Fund Management Ltd includes funds in the following ranges:
Columbia Threadneedle (UK) ICVC I
Columbia Threadneedle (UK) ICVC II
Columbia Threadneedle (UK) ICVC III
Columbia Threadneedle (UK) ICVC IV
Columbia Threadneedle (UK) ICVC V
Columbia Threadneedle (UK) ICVC VI
Columbia Threadneedle (UK) ICVC VII
Columbia Threadneedle (UK) ICVC IX
Columbia Threadneedle (UK) ICVC X
CT Diversified Monthly Income Fund
CT Property Growth & Income Fund ICVC
CT UK Property ICVC CT UK Property Feeder Fund
