Mind the Gap: Is the FCA's new Consumer Duty in CP21/13 worth the cost?

The Consumer Duty series

In this series of articles, we explore some of the topical issues raised by the FCA’s recent Consultation Paper on “A New Consumer Duty” (CP21/13) and its potential practical implications on firms. The new Consumer Duty marks a radical change to the FCA’s expectations of firms, that may have far-reaching consequences. In particular, there are  a number of question marks as to proportionality, necessity and cost-benefit, with fears that the FCA may have over-estimated the size of the gap in protection that this would fill and under-estimated the cost to firms of implementation and ongoing monitoring. With responses to the consultation due by the end of July, firms need to act now to make their voices heard. In this article, we present our views on some of the key issues arising from the FCA’s current formulation of the Consumer Duty, including potential unintended consequences.

Do you like what you are reading?

Please log-in or register to access Engage and set your preferences

New to Engage?

Create a free account for access to this publication and our vast catalogue of legal updates

Already Registered?

Log-in to continue reading



This website is operated by Hogan Lovells Solutions Limited, whose registered office is at 21 Holborn Viaduct, London, United Kingdom, EC1A 2DY. Hogan Lovells Solutions Limited is a wholly-owned subsidiary of Hogan Lovells International LLP but is not itself a law firm. For further details of Hogan Lovells Solutions Limited and the international legal practice that comprises Hogan Lovells International LLP, Hogan Lovells US LLP and their affiliated businesses ("Hogan Lovells"), please see our Legal Notices page. © 2022 Hogan Lovells.

Attorney advertising. Prior results do not guarantee a similar outcome.