Rules about the level of care provided by authorised persons FCA rules about the level of care provided to consumers by authorised persons
Authorised UK financial services firms’ treatment of their customers is governed by the FCA through its Principles for Businesses, as well as specific requirements in the FCA Handbook. The FCA’s Principles require firms to conduct their business with due skill, care and diligence, and to pay due regard to the interests of their customers and treat them fairly. The FCA can take action against firms which breach the Principles, including through financial penalties.
	The FCA is considering options for addressing consumer harm in relevant markets, including the introduction of a duty of care. The FCA published a Discussion Paper on a duty of care and potential alternative approaches in July 2018, which was followed by a Feedback Statement in April 2019. This Feedback Statement committed the FCA to undertaking a consultation on options for change to address potential deficiencies in consumer protection. This consultation is due to be published in May 2021.
	The Act formalises the next steps of the FCA’s work by requiring the FCA to carry out a public consultation about whether it should make general rules providing that authorised persons owe a duty of care to consumers, or other provision on the level of care that must be provided to consumers by firms. The Act specifies that the consultation must be carried out, and an analysis of responses published before 1 January 2022, with any subsequent rules made before 1 August 2022.