1. Firms must act to deliver good outcomes for retail customers – a retail customer is defined by The FCA and includes individual customers and small to medium-sized (SME) commercial customers.
2. Require firms to act in good faith, avoid causing foreseeable harm, and support customers in pursuing their financial objectives.
3. The framework identifies four specific outcomes that firms must strive to achieve for their customers:
   • Products and Services: Ensure products and services are fit for purpose and meet the needs of customers.
   • Price and Value: Provide fair value to consumers.
   • Consumer Understanding: Ensure communications are clear, fair, and not misleading, allowing customers to make informed decisions.
   • Consumer Support: Offer appropriate customer support throughout the product lifecycle.

The Consumer Duty is designed to promote transparency, fairness, and accountability, ensuring that consumers receive the right products and services, good value, and effective support from financial firms.

Finance Brokers

Lime are authorised and regulated by the Financial Conduct Authority (FCA). This means we strive to over achieve in all the above areas.

If you are using any finance broker please check if they are regulated by the FCA and ask them what they do to ensure they meet their requirements under Consumer Duty. If they can’t answer or are not regulated please question whether they are the right people to work with?

If you are a professional firm and referring your clients to an unregulated finance broker please be aware what that may mean if something goes wrong and how that impacts on your Professional Indemnity Insurance or reputation?

Consumer Duty is nothing revolutionary, it simply enforces what good firms already do.

By Dave Farmer