The Consumer Duty (FCA PS22/9) is the FCA’s framework for the standard of care UK regulated firms owe to retail customers. It came into force on 31 July 2023 for existing products and services. The Duty is built around a Consumer Principle, requiring firms to act to deliver good outcomes for retail customers, supported by three cross-cutting rules (act in good faith, avoid foreseeable harm, support customers in pursuing their financial objectives) and four outcomes (products and services; price and value; consumer understanding; consumer support).
Why the Consumer Duty matters
The Consumer Duty is outcomes-based rather than process-based. It is not enough to follow a process; firms must evidence that customers are actually receiving good outcomes. The FCA expects firms to monitor outcomes data and act when shortfalls are identified. In 2026, the FCA’s supervisory focus is on embedding and evidencing the Duty, not just on initial implementation.
Accountability under the Duty is personal as well as organisational: it dovetails with SM&CR, so individuals who design products, set prices or support customers are expected to understand how the Duty applies to their own decisions.
Who it applies to
All FCA-regulated firms that sell or distribute retail financial products and services, and all staff involved in product design, distribution, pricing, marketing, customer support and servicing.
Related terms
Conduct risk and SM&CR.