FG18/7: Fairness of variation terms in financial services consumer contracts under the Consumer Rights Act 2015

Show FG18/7 (PDF)[1]

Show FG18/7: Summary of feedback (PDF)[2]

We consulted on this guidance in GC18/2[3] (PDF) and have made some revisions to it in the light of the feedback we received.

This guidance outlines a number of non-exhaustive areas the FCA believes firms should have regard to when drafting and reviewing variation terms. These include and are not limited to the following:

• The validity of the reason(s) for using the variation term.
• The transparency of the variation term.
• Provision for notice in the variation term.
• Provision for the freedom to exit the contract should a consumer not wish to accept the variation.

Who this applies to

This guidance will be of interest to financial services firms, trade associations, consumers, and consumer representatives.