The UK's Financial Conduct Authority has introduced new consumer protection grounded in behavioural science. The new guidance comes at a time when there is an even greater need to ensure consumers' financial decisions and choices are optimal. Although aimed specifically at the finance industry, there are lessons for any sector about the need to identify barriers to good consumer outcomes and remove them.
4.22. Firms must understand and take account of behavioural biases and the impact characteristics of vulnerability can have on consumer needs and decisions. FCA
In July we saw the UK’s Financial Conduct Authority (FCA) upgrading its guidance to financial organisations, introducing the Consumer Duty which centres on ensuring firms deliver good outcomes for consumers, such as being easily able to switch between services, being able to understand and act on key information and ensure they have supportive and timely customer service. Firms will need to comply by the July 2023 deadline.
It comes at a time when there is already an even greater need to ensure consumer’s financial decisions and...
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