Consumer Duty: FCA finds some firms do not pass fair value test

Firms not challenging themselves enough on “uncomfortable questions”

Jenna Brown
clock • 4 min read

A Financial Conduct Authority (FCA) review into the Consumer Duty preparedness of firms has found some businesses could not prove why their products and services provided fair value to clients.

The regulator said it had reviewed 14 firms' fair value assessment frameworks, which set out the approach firms are taking and found some were lacking. Price and value is one of the four key outcomes that firms need to assess under Consumer Duty, which comes into force on 31 July. The regulator said it had assessed a range of mainly large firms within retail banking, consumer investments, payments and digital assets, and consumer finance during January and February for its project. It said while many firms were making "substantial efforts in implementing the Duty" there were exampl...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

Chancellor targets FOS modernisation and FCA consultation

Chancellor targets FOS modernisation and FCA consultation

Consultation part of the advice guidance boundary review

Isabel Baxter
clock 15 November 2024 • 3 min read
PFS turmoil continues as interim CEO Don MacIntyre exits

PFS turmoil continues as interim CEO Don MacIntyre exits

Organisation has been at loggerheads with CII

Jenna Brown
clock 05 November 2024 • 2 min read
Implications of the PRA's 2025 life insurance stress test

Implications of the PRA's 2025 life insurance stress test

A regulatory shift

Sheikh Yasir
clock 01 November 2024 • 4 min read