Overview

This bill mandates the Financial Conduct Authority (FCA) to establish rules requiring financial institutions to uphold a duty of care towards their customers in all regulated activities. This aims to enhance consumer protection within the financial services sector.

Description

The Financial Services Duty of Care Bill compels the FCA to create regulations establishing a "duty of care" for authorized financial service providers. This duty requires these firms to act with reasonable care and skill when providing services or products to consumers. The definition of "consumer" aligns with the Consumer Rights Act 2015. The FCA must implement these new rules within six months of the bill becoming law. The bill applies across England, Wales, Scotland, and Northern Ireland.

Government Spending

The bill itself doesn't directly specify government spending. However, the implementation of the new FCA regulations may involve costs associated with rule-making, enforcement, and potential support for affected businesses adjusting to the new duty of care. No specific figures are provided in the bill text.

Groups Affected

This bill primarily affects:

• Financial institutions: Banks, investment firms, and other authorized financial service providers will need to adapt their practices to meet the new duty of care. This could involve changes to internal procedures, training, and potentially increased compliance costs.
• Consumers: Consumers will benefit from increased protection, with financial institutions legally obligated to act with reasonable care and skill when providing services. This could lead to improved service standards and better consumer outcomes.
• The FCA: The FCA will be responsible for creating and enforcing the new regulations, requiring additional resources and potentially leading to increased workload.

Powered by nyModel