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The Financial Conduct Authority (FCA) has published good and poor practice examples into how firms are working to improve consumer understanding of financial products and services, under the Consumer Duty.
The report highlights positive steps firms have taken to improve the way they design, test and monitor communications so customers can make effective, informed decisions.
These improvements are a key part of delivering better outcomes under the Consumer Duty and building long-term trust in financial services.
Read the findings of the FCA’s review: Consumer understanding: good practice and areas for improvement | FCA.
The FCA has also published its Regulatory Priorities for the Consumer Finance sector.
This report will be published annually and replaces its portfolio letters. It sets out the key issues the FCA will focus on over the coming year. By bringing its priorities together in a single, concise publication, the FCA aims to provide firms with greater clarity, predictability and transparency about its expectations.
The report is intended to support boards and senior leaders in focusing on the areas that matter most for delivering good consumer outcomes and running sustainable, well‑governed businesses.
The FCA’s priorities focus on ensuring that consumers:
- can access well designed credit that meets their needs and offers fair value,
- receive appropriate support when they struggle with debt, and
- can complain when things go wrong and obtain timely, effective redress.
What this means for firms, is that the focus is on supporting lenders to expand their offering to underserved borrowers who can afford credit but are currently excluded.
Also, if it introduces a redress scheme, the FCA wants motor finance lenders to deliver it in an orderly, efficient and consistent way. This will bring certainty and finality to these issues and reduce the costs to industry compared to a court or complaint-led approach.
