Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

FCA Launches 11 Consumer Duty Investigations Since 2024

The Financial Conduct Authority (FCA) has opened 11 investigations into potential breaches of Consumer Duty rules since their introduction three years ago. The number of investigations has “steadily increased” since the first was opened in August 2024, according to the regulator.

The 11 investigations cover firms in the insurance, pensions, wealth management, consumer investments, peer-to-peer lending, and claims management sectors. The FCA highlighted Principle 12 of the Consumer Duty, which requires firms to “act to deliver good outcomes for retail customers.”

The regulator stated that firms should continually assess whether their actions align with customers’ interests and financial objectives. The FCA said it will take action where it finds firms have not met these standards.

Where concerns are identified, the FCA may use assertive supervision, which can range from discussions with firms to imposing requirements. Not all interventions result in formal enforcement investigations if potential consumer harm is addressed.

In the past year, the FCA intervened 382 times. Examples of interventions included requiring a claims management company to stop regulated activities and asking other firms to sign an asset restriction voluntary requirement (VREQ).

The FCA emphasised that firms are expected to maintain high standards, work to prevent harm, and provide evidence of good consumer outcomes. The regulator also noted that it is pragmatic in its approach and will work with firms that act appropriately, but will take enforcement action when necessary.

Last week, the FCA consulted on the scope of the Consumer Duty to clarify the rules.