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Blog: The FCA’s New Consumer Duty: “Get it right in the first place”

January 27, 2023

By Lisa Laybourn, Head of Technical Policy & Regulation at TISA

The FCA’s new Consumer Duty represents what the regulator terms a “paradigm shift” in its expectations of firms. The Consumer Duty is a package of measures comprising of the introduction of a new Consumer Principle, which require firms “to act to deliver good outcomes for retail customers”, three Cross Cutting Rules and four outcomes which are the key elements of a firm-consumer relationship. These measures are intended to provide a framework in which firms can have certainty about the standards expected of them and correspondingly, the standards consumers can expect of firms. 

The regulator wants to see firms put themselves in the customers shoes- to ask themselves would they be happy to be treated in the way that the firm treats its customers, act to enable not hinder good outcomes and assess the effectiveness of their actions. In summary, the regulator wants to see firms “get it right in the first place”.

The rules impact all firms which distribute or manufacture products and/or services to retail customers, even if they do not have a direct relationship with the end customer and form a crucial part of the FCA’s 2022-2025 strategy. The wide-ranging proposals will require firms to review their product suite, communications, and end-to-end customer journey, and to consider changes in areas including governance and accountability, MI and reporting, product design, pricing, distribution, servicing, and staff training – all within a challenging implementation timeframe.

The final rules and guidance released in July 2022, provided some much-needed clarification of how the Consumer Duty might be implemented across different sectors. However, this new set of measures are more principles based than we have previously seen and the definition of a proportionate and reasonable response to the Duty is largely left to firms to determine.

The FCA’s recent statement ( (25th January 2023) is a clear recognition that firms are embracing the spirit of the Consumer Duty and working towards better compliance. As we work with both our members and the broader industry, that commitment to raising standards for customers and improving culture is evident. 

However, as with all regulatory change, the devil is in the detail. In certain aspects of the Consumer Duty, standardisation is required to enable effective adoption of the Duty across the distribution chain, and ensure processes are scalable and sustainable. The Duty requires significant analysis and review of policies and operational processes, and implementation of any resulting change. That takes valuable time and resources to implement effectively.


TISA is supporting its members and the industry by working collaboratively through these issues to establish common standards and best practice. We are planning to publish the first version of our best practice guide to the Consumer Duty in early March to help firms navigate a policy area that is often difficult to comprehend.

The Good Practice Guide is intended to help firms, primarily in the saving and investment space, understand their obligations under Consumer Duty, addressing particular areas of the Duty that through collaboration with our members, we have identified as the most challenging. Through that same collaborative process, we have identified considerations firms might make in deciding how the practical application of the Duty might by undertaken.

TISA will be continuing its work on Consumer Duty as the industry works towards the final implementation deadline and beyond to identify areas and issues, where it would be useful for firms in the distribution chain to take a more standardised approach. 


Get the latest update at TISA’s Consumer Duty Forum on 28th March in London, where we will deliberate about the regulator’s expectations of financial services firms in delivering good outcomes for retail customers. The event will explore how manufacturers are progressing in conducting all the reviews necessary to meet the outcome rules for their existing open products and services ahead of the 30th April 2023 deadline and further consider the duty’s opportunities, implementation challenges and industry best practice for achieving compliance at every level of the firm.

Find out more here: https://www.tisa.uk.com/product/consumer-duty-forum/?event_date=2023-03-28

Read TISA’a comment on the areas of focus highlighted by the FCA for firms implementing the Consumer Duty here:

For media enquiries:

Kuba Stawiski 

H/Advisors Cicero



Useful links:

TISA update on Financial Services and Markets Bill, including links to speeches.