Read more about the Consumer Duty, including the 3 cross-cutting rules and the 4 outcomes we expect firms to deliver.
The Consumer Duty (the Duty) sets the standard of care that firms should give to retail consumers. It moves beyond compliance checklists and focusses on embedding fairness, transparency, and customer-centricity into every interaction.
What the Duty consists of
- A consumer principle that reflects the overall standard of behaviour we want from firms:
'A firm must act to deliver good outcomes for retail customers.'
- 3 cross-cutting rules that explain how firms should act to deliver good outcomes:
- Act in good faith towards customers. Treat customers honestly and fairly.
- Avoid causing foreseeable harm. Identify and mitigate risks before they materialise.
- Enable and support customers to pursue their financial objectives. Provide clear information and effective support.
The cross-cutting rules apply across all areas of firm conduct to inform and help firms interpret the 4 outcomes.
- 4 outcomes which are a suite of rules and guidance that set more detailed expectations for firm conduct in 4 areas that represent key elements of the firm-consumer relationship:
- The governance of products and services.
- Price and value.
- Consumer understanding.
- Consumer support.
Raising standards
Under the Duty, firms must act to deliver good outcomes for retail customers. Each of the 4 outcomes represent key elements of the firm-consumer relationship.
Each should be considered alongside the other outcomes and cross-cutting obligations of the Duty.
Outcome 1: Products and services
Outcome we want
We want consumers to be sold products and services that meet their needs, characteristics and objectives. Linking with our fair value outcome, we want to ensure that products or services are being sold to the right people and that they work in the way they expect.
What we expect
Consumers can only pursue their financial objectives and avoid foreseeable harm when products and services are fit for purpose. Firms are expected to take certain steps to ensure they are meeting this outcome. These include clearly defining their target market, making sure products are suitable for that market, and monitoring those products regularly to confirm they still meet customer needs.
You can find more information, including examples, on our Consumer Duty implementation review page[2].
Outcome 2: Price and value
Outcome we want
We want consumers to get products and services that offer fair value. The specific focus of the price and value outcome rules is to make sure that the price a customer pays for a product or service is reasonable compared to the overall benefits they receive. We refer to this as fair value.
What we expect
Retail customers experience harm where they don't get value for their money. Fair value is about more than just price. Firms should always pay attention to whether fees and charges are reasonable compared to benefits. This means actively avoiding hidden costs or poor value propositions. Regularly reviewing pricing and fees alongside benefits, limitations and non-financial costs helps to assess fairness and identify any issues earlier.
Fair value assessments are crucial and are intended to ensure firms properly consider fair value in their decision-making about products and services that are offered or provided to retail customers.
You can find more information, including examples, as part of our price and value outcome good and poor practice update[3], as well as our broader Consumer Duty implementation review[4].
Outcome 3: Consumer understanding
Outcome we want
We want consumers to understand the information they are given and make timely and informed decisions. To do this, information should be clear, timely, and accessible – without jargon or misleading terms.
What we expect
We see harm occur when consumers do not understand the information they are given, or are not provided with it at the right time to make an informed decision. Firms should support their customers by giving them the information they need, at the right time, and presented in a way they can understand. This includes tailoring communications to their customer’s level of financial literacy. This ought to be coupled with testing, to ensure consumers have understood key information.
You can find more information, including examples, as part of our Consumer Duty implementation review[5].
Outcome 4: Consumer support
Outcome we want
We want firms to provide a level of support that meets customers' needs throughout their relationship with the firm. Firms' customer service should enable customers to realise the benefits of the products and services they buy, and support them in pursuing their financial objectives.
What we expect
A product or service that a customer can't properly use and enjoy is unlikely to offer fair value. It's essential that firms provide effective support throughout a product's lifecycle. This means that customers do not face unreasonable barriers when they need to access support, and they get the support they need when they contact their provider. Ongoing consumer service should be as easy to access as sales, and firms should avoid barriers to switching, cancelling, or getting help.
More information and examples can be found in our Consumer support outcome: good practices and areas for improvement[6] publication.
Small firms and proportionality
Smaller firms' implementation of requirements around the Duty may look slightly different. However, they are still expected to deliver the same good outcomes as all other firms.
We recognise that smaller firms have limited resources. Proportionality means applying the Duty in a way that fits a firm's size and customer base. The Duty is outcomes-based, not process-heavy, and evidence should be proportionate to the firm's scale and complexity.
Resources
We continue to support firms to meet the requirements of the Duty. Search our publications and resources[7].
Our Consumer Duty focus areas[8] set out our cross-cutting and sector priorities for 2025/26.
We'll continue to publish examples of good and poor practice, as well as engaging with industry to make the Duty effective and proportionate while maintaining strong consumer protection.
