UK FCA Consumer Duty (Principle 12 and PRIN 2A) 2a2-avoid-foreseeable-harm: Avoid causing foreseeable harm to retail customers through acts or omissions, directly or through the firm's role in the distribution chain, across the product lifecycle

What does 2a2-avoid-foreseeable-harm require?

The second cross-cutting obligation is not to cause retail customers foreseeable harm. Harm may come from action or inaction, in the firm's own dealings with the customer or by way of its place in the chain, and the obligation runs across design, terms, marketing, sale and support. A firm with an ongoing relationship must act to avoid harm throughout the product's life; a firm involved only at a point in time need not act on harm that only later becomes foreseeable; and the duty is not a duty to prevent all harm. Examples in the guidance include unsuitable products reaching the wrong customers, excessive charges, poor service, and failing to act on known problems.