PS22/9: A new Consumer Duty

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Policy Statement & Finalised Guidance

We set out the final rules and guidance for a new Consumer Duty that will set higher and clearer standards of consumer protection across financial services and require firms to put their customers’ needs first. We also respond to feedback to CP21/36.

Read PS22/9 [PDF]

Read FG22/5 [PDF]

What we are changing  

We are introducing rules comprising: 

  • A new Consumer Principle that requires firms to act to deliver good outcomes for retail customers.  
  • Cross-cutting rules providing greater clarity on our expectations under the new Principle and helping firms interpret the four outcomes (see below).  
  • Rules relating to the four outcomes we want to see under the Consumer Duty. These represent key elements of the firm-consumer relationship which are instrumental in helping to drive good outcomes for customers.

These outcomes relate to:  

  • products and services  
  • price and value   
  • consumer understanding  
  • consumer support  

Our rules require firms to consider the needs, characteristics and objectives of their customers – including those with characteristics of vulnerability – and how they behave, at every stage of the customer journey. As well as acting to deliver good customer outcomes, firms will need to understand and evidence whether those outcomes are being met.  

Who this affects    

This policy and guidance is likely to interest:    

  • regulated firms, including those in the e-money and payments sector  
  • consumer organisations and individual consumers 
  • industry groups/trade bodies 
  • policy makers and regulatory bodies 
  • industry experts and commentators 
  • academics and think tanks 

Next steps   

The rules and guidance we are introducing come into force on a phased basis:  

  • for new and existing products or services that are open to sale or renewal the rules come into force on 31 July 2023  
  • for closed products or services, the rules come into force on 31 July 2024 

During the implementation period, we'll be hosting a series of industry events to help firms prepare for the new rules coming into force. If you’d like to hear more about future Consumer Duty events and related communications, please sign up for email updates.