 Customers will be given greater protection against poor service under new financial service rules that kick in next week. The new Consumer Duty will come into force on July 31 for new and existing products and services and is being implemented by the Financial Conduct Authority (FCA). As part of these rules, businesses will have to prove they're acting in the best interest of customers. They'll be required to provide clear information, make it easier to switch and cancel deals, and only offer suitable products and services. For example, speaking last week, FCA chief executive Nikhil Rathi said savings providers should keep customers informed about available rates so people aren't left languishing in poor accounts. Consumers should also get support when they need it and additional care must be given to 'vulnerable customers' who are more susceptible to harm. Consumer Duty was finalised by the FCA last summer and businesses were given 12 months to implement changes. The Consumer Duty will require financial firms to: But the new rules will not apply to past actions by firms - only if something has happened after July 31. Consumer Duty will be extended to closed book products - ones that are no longer on sale - in a further 12 months. In addition, the FCA has launched a consultation on toughening up safeguards against financial products on social media. Sheldon Mills, Executive Director of Consumers and Competition, said: 'The current economic climate means it's more important than ever that consumers are able to make good financial decisions. 'The financial services industry needs to give people the support and information they need and put their customers first. 'The Consumer Duty will lead to a major shift in financial services and will promote competition and growth based on high standards. 'As the Duty ra){kind=link}
The new Consumer Duty will come into force on July 31 for new and existing products and services and is being implemented by the Financial Conduct Authority (FCA)
Customers will be given greater protection against poor service under new financial service rules that kick in next week.
The new Consumer Duty will come into force on July 31 for new and existing products and services and is being implemented by the Financial Conduct Authority (FCA).
As part of these rules, businesses will have to prove they’re acting in the best interest of customers.
They’ll be required to provide clear information, make it easier to switch and cancel deals, and only offer suitable products and services.