UK FCA Consumer Duty (Principle 12 and PRIN 2A)
The FCA's Consumer Duty as set out in Principle 12 and PRIN 2A: the duty to act to deliver good outcomes for retail customers across the distribution chain, the cross-cutting obligations (good faith, avoiding foreseeable harm, enabling and supporting financial objectives, rectifying harm), manufacturer product approval and review and distributor arrangements, fair value assessments and their regular review, communications that support understanding and are tested and monitored, customer support without unreasonable barriers, and the governance, annual board report, outcome monitoring, FCA notification, redress and product book provisions.
UK FCA Consumer Duty (Principle 12 and PRIN 2A) is a compliance framework from United Kingdom with 6 domains and 23 controls. The largest domains are PRIN 2A.8 to 2A.11: governance and culture, monitoring, redress and product book sales – UK FCA Consumer Duty (Principle 12 and PRIN 2A) (6 controls), PRIN 2A.3: the products and services outcome (manufacturer approval and review, distributor arrangements) – UK FCA Consumer Duty (Principle 12 and PRIN 2A) (5 controls), PRIN 2A.2: the cross-cutting obligations (good faith, foreseeable harm, financial objectives) – UK FCA Consumer Duty (Principle 12 and PRIN 2A) (4 controls). Every control below carries what it requires and what an assessor expects to see.
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Framework Domains (6)
PRIN 2A.2: the cross-cutting obligations (good faith, foreseeable harm, financial objectives) – UK FCA Consumer Duty (Principle 12 and PRIN 2A)
| Code | Title |
|---|---|
| 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 |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a2-financial-objectives | Enable and support retail customers to pursue their financial objectives, using the information the firm holds and empowering good choices |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a2-good-faith | Act in good faith towards retail customers: honesty, fair and open dealing, and conduct consistent with their reasonable expectations |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a2-rectify-harm | When complaints, monitoring or any other source show retail customers suffered foreseeable harm from the firm's acts or omissions, take appropriate action to rectify it |
PRIN 2A.3: the products and services outcome (manufacturer approval and review, distributor arrangements) – UK FCA Consumer Duty (Principle 12 and PRIN 2A)
| Code | Title |
|---|---|
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a3-closed-products | Manufacturers of closed products maintain a process to assess whether any aspect of the product breaches the cross-cutting obligations and whether it affects groups of customers differently |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a3-distributor-arrangements | Distributors maintain product distribution arrangements that avoid foreseeable harm, obtain adequate manufacturer information, support reviews, review the arrangements regularly and act on issues |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a3-manufacturer-approval | Manufacturers maintain, operate and review a product approval process that fixes a granular target market, assesses needs, characteristics and objectives, and sets the distribution strategy |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a3-manufacturer-review-test | Manufacturers regularly review products against events affecting the target market, test them including scenario analysis, and act on adverse findings |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a3-manufacturer-to-distributor | Manufacturers select appropriate distribution channels and give distributors adequate information on the product, its approval process, target market and distribution strategy |
PRIN 2A.4: the price and value outcome (fair value assessments by manufacturers and distributors) – UK FCA Consumer Duty (Principle 12 and PRIN 2A)
| Code | Title |
|---|---|
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a4-information-to-distributors-and-distribution-consistency | Manufacturers give distributors the information they need to understand the value of the product, and distributors distribute only where their arrangements are consistent with fair value |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a4-manufacturer-fair-value | Manufacturers ensure each product provides fair value to retail customers in its target market and carry out a fair value assessment before marketing and before any adaptation |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a4-review-and-act | Review the value assessment regularly through the product's life, including closed products, and act where the product no longer provides fair value |
PRIN 2A.5: the consumer understanding outcome (communications) – UK FCA Consumer Duty (Principle 12 and PRIN 2A)
| Code | Title |
|---|---|
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a5-communications-support-understanding | Support retail customer understanding: communications meet customers' information needs, are likely to be understood, are provided in good time and through suitable channels |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a5-tailor-and-interact | Tailor communications to the characteristics of the recipients, including vulnerability, the channel and the firm's role, and in one-to-one interactions check understanding and respond to customers' needs |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a5-test-monitor-notify | Test communications before use where appropriate, monitor whether they are delivering good outcomes, adapt them when they are not, and notify other firms in the chain of problems and give them information in good time |
PRIN 2A.6: the consumer support outcome – UK FCA Consumer Duty (Principle 12 and PRIN 2A)
| Code | Title |
|---|---|
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a6-firm-to-firm-support | Deal with reasonable requests from other firms in the distribution chain effectively and in good time so that they can support retail customers |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a6-support-design-delivery | Design and deliver customer support that meets customers' needs including vulnerability, lets them use the product as reasonably anticipated, and puts no unreasonable barriers in the way of acting in their interests |
PRIN 2A.8 to 2A.11: governance and culture, monitoring, redress and product book sales – UK FCA Consumer Duty (Principle 12 and PRIN 2A)
| Code | Title |
|---|---|
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a10-redress | Where foreseeable harm has been caused, take appropriate action: handle complaints under DISP, take reasonable steps to reach customers the firm cannot contact, and notify the firm responsible |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a11-product-books | On buying or selling a product book, apply the Duty to the acquired book and pass the information the buyer needs to comply |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a8-board-report | At least annually the governing body reviews and approves a report on the outcomes retail customers receive, confirms the firm is complying, and agrees the actions and strategy changes needed |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a8-governance-culture | Embed the Duty in strategy, governance, leadership, people policies, incentives and remuneration, with a Consumer Duty champion at board level |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a9-monitor-outcomes | Regularly monitor the outcomes retail customers receive from the firm's products, communications and support, by customer group, and identify root causes and act on poor outcomes |
| uk-fca-consumer-duty-principle-12-and-prin-2a::2a9-notify-fca | Notify the FCA when the firm becomes aware that another firm in its distribution chain is not or may not be complying with the Duty |
What is UK FCA Consumer Duty (Principle 12 and PRIN 2A) and who does it apply to?
UK FCA Consumer Duty (Principle 12 and PRIN 2A) is a compliance framework from United Kingdom with 6 domains and 23 controls. The FCA's Consumer Duty as set out in Principle 12 and PRIN 2A: the duty to act to deliver good outcomes for retail customers across the distribution chain, the cross-cutting obligations (good faith, avoiding foreseeable harm, enabling and supporting financial objectives, rectifying harm), manufacturer product approval and review and distributor arrangements, fair value assessments and their regular review, communications that support understanding and are tested and monitored, customer support without unreasonable barriers, and the governance, annual board report, outcome monitoring, FCA notification, redress and product book provisions. It is used by organisations to establish and maintain compliance with industry standards and regulatory requirements.
What does UK FCA Consumer Duty (Principle 12 and PRIN 2A) actually require?
UK FCA Consumer Duty (Principle 12 and PRIN 2A) has 23 controls organised across 6 domains. The largest domains are PRIN 2A.8 to 2A.11: governance and culture, monitoring, redress and product book sales – UK FCA Consumer Duty (Principle 12 and PRIN 2A) (6 controls), PRIN 2A.3: the products and services outcome (manufacturer approval and review, distributor arrangements) – UK FCA Consumer Duty (Principle 12 and PRIN 2A) (5 controls), PRIN 2A.2: the cross-cutting obligations (good faith, foreseeable harm, financial objectives) – UK FCA Consumer Duty (Principle 12 and PRIN 2A) (4 controls). Each control defines specific requirements that organisations must implement to achieve compliance.
If I already comply with another framework, how much of UK FCA Consumer Duty (Principle 12 and PRIN 2A) do I already cover?
UK FCA Consumer Duty (Principle 12 and PRIN 2A) does not currently have cross-framework mappings in our system. Check back as we continuously expand our mapping database.
How do I implement UK FCA Consumer Duty (Principle 12 and PRIN 2A)?
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