Principle 12: The FCA new Consumer Duty—pensions impact
In her new article for Lexis Nexis, Rowena Rowena Wisniewska Sethi looks at Principle 12: The FCA new Consumer Duty—pensions impact, including:
What is the new Consumer Duty?
Who does the new Consumer Duty apply to?
What is the impact for pension providers and schemes?
What is the impact going forward?
Following consultations in May and December 2021 on a Consumer Duty that would set clearer and higher expectations for firms’ standards of care towards consumers, the Financial Conduct Authority (FCA) published Policy Statement PS22/9 on 27 July 2022 as guidance given under section 139A of the Financial Services and Markets Act 2000 (FSMA 2000). The FCA Policy Statement PS22/9 together with FG22/5 Final non-Handbook Guidance for firms on the Consumer Duty sets out rules and guidance in respect of the new Consumer Duty (Principle 12), which places an increased emphasis on firms putting the needs of their customers first, by creating a requirement that they act to deliver good outcomes for retail consumers.