Overview

This bill mandates the Financial Conduct Authority (FCA) to establish rules ensuring financial service providers have a legal duty of care towards their customers. This aims to enhance consumer protection in the financial services sector.

Description

The Financial Services Duty of Care Bill amends the Financial Services and Markets Act 2000. It compels the FCA to create rules implementing a duty of care for authorized financial institutions when dealing with consumers in their regulated activities. This duty of care requires these institutions to exercise reasonable care and skill when providing financial products or services. The definition of "consumer" aligns with the Consumer Rights Act 2015. The FCA must enact these rules within six months of the bill becoming law. The bill applies across England, Wales, Scotland, and Northern Ireland.

Government Spending

The bill doesn't directly specify government spending. However, the FCA's implementation of the new rules may involve additional resource allocation for rulemaking, enforcement, and potential litigation. The exact financial implications are not detailed in the bill itself.

Groups Affected

• Financial institutions: Banks, investment firms, insurance companies, and other authorized financial service providers will be directly impacted, needing to adapt their practices to comply with the new duty of care rules.
• Consumers: Consumers will benefit from stronger legal protection against negligence and malpractice by financial institutions.
• The FCA: The FCA will be responsible for creating and enforcing the new rules, requiring additional work and resources.

Powered by nyModel