FS19/2: a duty of care and potential alternative approaches – summary of responses and next steps

Read FS19/2

In this feedback statement, we set out:

• the range and complexity of the responses we received
• the options for change that we think are, alone or in combination, most likely to deliver a higher degree of consumer protection, and which will be our primary areas of focus

Who this applies to

The feedback statement will be of interest to:

• consumer groups and individual consumers
• industry groups / trade bodies
• regulated firms
• policy-makers and regulatory bodies
• industry experts and commentators
• academics and think tanks

Next steps

On 14 May 2021, we published a consultation paper proposing to introduce a new ‘Consumer Duty’ (NCD) which will set a higher level of consumer protection in retail financial markets for firms to adhere to.

In this consultation paper, we set out: 

• the proposal for a new Consumer Duty  
• the outcomes we are seeking to achieve  
• what this would mean for firms, consumers and the FCA  

After considering responses, we will set out the proposed text for any new rules or guidance to implement our proposals in a subsequent consultation, along with a cost benefit analysis.

We expect to be able to launch a subsequent consultation on any proposed rules and guidance by 31 December 2021 and make new rules by 31 July 2022.