How the Consumer Duty shifts liability and what new protections investors can now invoke — a guide to the FCA’s Consumer Duty for fraud victims.
What Is the Consumer Duty?
The FCA’s Consumer Duty, which came into force in July 2023 and was extended to closed products in July 2024, sets a higher standard of consumer protection in financial services. It requires firms to deliver good outcomes for retail customers across four key areas: products and services, price and value, consumer understanding, and consumer support.
What Changed for Investors
The Consumer Duty creates a higher bar for what constitutes acceptable firm behaviour. Firms must now proactively consider whether their products and services are likely to cause harm, not just react to complaints. This shifts some of the burden from consumers to firms.
Implications for Fraud Victims
For fraud victims dealing with FCA-authorised firms, the Consumer Duty provides additional grounds for complaints. If a firm failed to adequately warn you about risks, failed to provide clear information, or failed to support you when you raised concerns, these may constitute Consumer Duty breaches.
How to Use the Consumer Duty in Your Complaint
When complaining to a firm or the FOS, explicitly reference the Consumer Duty. Argue that the firm failed to deliver good outcomes in the relevant area (understanding, support, etc.). The FOS has been receptive to Consumer Duty arguments in cases decided since 2024.
Limitations
The Consumer Duty only applies to FCA-authorised firms. It does not apply to unauthorised firms (which are responsible for the majority of investment fraud losses). It also does not create a private right of action — you cannot sue a firm directly for Consumer Duty breaches, but you can complain to the FOS.