Our response to the FCA’s statement on Duty of Care Consultation
The need for truly transformative change remains
23 April, 2019
The Financial Conduct Authority (FCA) today has released its feedback statement following consultation on a potential duty of care for the financial industry. The FCA has concluded that a further review of the options for change is needed. While welcome, this does not prevent consumer harm in the meantime.
Peter Tutton, Head of Policy at StepChange Debt Charity, said:
"We consistently see the harm that financial products like credit can cause. For us, a ‘duty of care’ is about ensuring firms do all they can to design problems out and build fair treatment into everything they do. It is about ensuring firms never take advantage of consumer vulnerabilities, biases or constrained choice.
"So, while we recognise the FCA’s commitment to review how its principles and the way they are applied are meeting these outcomes, we are disappointed that this consultation has not arrived at more concrete steps forward.
"The FCA has recently made some excellent progress with long standing problems like overdraft charges, credit card debt, and the high cost credit market. Yet these have all been reactive rather than proactive responses, and in practice have amounted to shutting the stable door after the horse has bolted.
"The enduring nature of these problems highlights the gap between the fair and consumer focused market we want to see, and a financial services culture that has not yet delivered this."
Notes to Editors
You can read the FCA’s feedback statement here.