The Consumer Duty regulations set up by the UK Financial Market Conduct Authority (FCA) for all
financial institutions across the UK will be officially implemented on July 31 this year!
The main purpose of the new rules is to upgrade the previous consumer protection policy into an
outcome-based implementation to protect the rights and interests of consumers who purchase
financial products. So, what are the key elements of this regulation?
Firstly,
the regulations are governed by an overarching consumer principle, the so-called Principle
12, which requires that financial service institutions must deliver a good outcome to consumers, i.e.
to provide good service experience and expected results, not to mislead or deceive consumers.
Secondly,
Secondly, there are three ‘Cross-cutting Rules’, which require financial service institutions to act in
good faith, avoid causing foreseeable harm, and assist to achieve the expected goals of consumers.
In conclusion, financial institutions cannot compromise consumers’ interests for their own benefit.
Finally,
it requires firms to achieve better service results in the following four aspects. The first is products and services. Firms must design products according to the needs, characteristics and goals of consumers to ensure that products meet the actual needs of customer. They cannot promote products that do not meet consumers’ needs. The second is price and value. The price consumers pay should match the fair value of the product, and firms cannot charge excessively.
The third is customer information. Consumers need to obtain clear and actual information so that they can make the right decisions. Firms can not mislead or conceal the facts. The fourth is customer support.
Financial service institutions should try their best to provide the support and assistance we need,
especially for vulnerable consumer groups, which need corresponding service measures.
GlobePay has already implemented the Consumer Duty rules into our practice, and is ready to provide
the right support to consumers, particularly vulnerable consumers.
As our merchants, if you have any thoughts on this impending consumer responsibility, welcome to leave
your opinion by emailing us at support@globepay.co
