Recommendation 176

We received a considerable amount of evidence critiquing the FCA’s implementation of the Consumer Duty. The Consumer Duty came into force on 31 July 2023. 268 The FCA stated that a key outcome of it was for “consumers to have confidence in retail financial services markets, with healthy competition based on high standards and firms focused on delivering good customer outcomes.” 269 To implement this, the Consumer Duty requires firms to “act to deliver good outcomes for retail customers”. 270 Amongst other requirements, the FCA stated that management boards are required “to use data to identify, monitor and confirm they are satisfied that their customers’ outcomes are consistent with the Duty” and stated that firms “must act when customers suffer poor outcomes.” 271