Alongside the Approach to Consumers document, which was published on 17 July 2018, the FCA has published a discussion paper (DP18/5) on the introduction of a duty of care for financial services firms.
In response to the FCA’s consultation on its future approach to consumers (carried out in November 2017), some stakeholders raised concerns that the FCA’s current regulatory framework did not provide adequate protection for consumers and called for the introduction of a “duty of care” on firms when dealing with consumers. In response, the FCA has published the discussion paper to help it better understand where there are gaps in its regulatory and legal framework.
In addition, the discussion paper aims to help the FCA:
- better understand and consider possible alternative approaches that might address stakeholders’ concerns;
- understand what a new duty for firms might do to enhance good conduct and culture in financial services, including how this could influence consumer outcomes, alongside SM&CR; and
- assess whether the change is desirable and if so what form it could take, how it would work in practice and the possible consequences for consumers, firms and the FCA.
The deadline for comments is 2 November 2018.