The FCA has published the minutes of a board meeting held on 26 May 2022 at which, amongst other items, the board discussed the new Consumer Duty. Highlights include:
- feedback from external stakeholders on the proposed rules and timescales is being addressed and associated risks mitigated;
- the rules and supporting guidance are being developed to address concerns raised in the consultation;
- there will be a phased implementation period to allow firms to embed the new requirements. The specifics of the implementation period will be discussed and agreed at the Executive Regulation and Policy Committee meeting;
- the FCA will issue various communications on the new Consumer Duty to aid firms’ implementation, including at sectoral level, small firm engagement, through supervisory work, live and local events, webinars and guidance on the FCA website;
- the FCA is working closely with FOS to ensure alignment between the regulators;
- the board highlighted the potential reputational risk that the Consumer Duty would not take effect during the height of the cost-of-living crisis, when consumers would need the additional protection the most.
The FCA expects to make final rules on the Consumer Duty by 31 July 2022.