PARLIAMENTARY WRITTEN QUESTION
Consumers: Protection (23 May 2022)

To ask the Chancellor of the Exchequer, what recent assessment he has made of the impact on UK competitiveness of the Financial Conduct Authority's recently consulted proposals entitled A New Consumer Duty; and what cost benefit analysis he has done of those proposals.

Asked by:
Dame Harriett Baldwin (Conservative)

The Government is committed to ensuring that all consumers of financial services are appropriately protected.

That is why the Government legislated in the Financial Services Act 2021 to require the Financial Conduct Authority (FCA) to consult on whether it should make rules, giving regulated financial service providers a duty of care over their customers. This was in response to concerns from Parliamentarians, who wanted to reduce levels of consumer harm in financial services.

In response, the FCA has proposed a new Consumer Duty, which seeks to clarify and raise expectations for the standard of care that should be provided by financial services firms to consumers, and ensure consumers benefit from a higher level of care from financial services firms.

The FCA has published a cost benefit analysis covering its proposed Consumer Duty which is available on its website.

The FCA, as an operationally independent regulator, is responsible for carrying out its Consumer Duty consultation including assessing the potential costs and benefits of the proposals and for making any new rules which it considers appropriate following that consultation.

Answered by:
John Glen (Conservative)
26 May 2022