According to the regulator’s 2020 Financial Lives Survey, one in four respondents revealed they lack confidence in the sector, and only 35% believed firms were honest and transparent in their dealings with consumers.
Following these revelations, the FCA is proposing to expand its existing rules and principles to ensure firms provide a higher level of consumer protection consistently.
The regulator’s new Consumer Duty will focus on driving a cultural and behavioural shift for firms, resulting in consumers receiving products and services that are “fit for purpose”.
Sheldon Mills, the executive director of consumers and competition at the FCA, said: “The package of measures we are proposing will enhance our existing rules and is designed to tackle the harms we see in financial services markets, and their causes, as well as put consumers in a stronger position to make good decisions.
“We want firms to be putting themselves in the shoes of consumers and asking “would I be happy to be treated in the way I treat my customers?”. We want consumers to be able to advance their financial wellbeing and build positive futures for themselves and their families.”