We set high and clear standards for consumer protection across financial services, and hold firms to account if they don't meet them.
We all rely on financial services: from bank accounts to pensions, and insurance to loans.
One of our operational objectives is to use our powers over firms and markets to protect consumers.
We work to secure an appropriate level of protection, and we adapt our approach based on the type of risk and potential harm, for example, to individuals in vulnerable circumstances who may be at greater risk.
Consumer Duty
Our Consumer Duty[1] sets high and clear standards for consumer protection across financial services.
This means consumers should expect:
- The support they need, when they need it.
- Communications they understand.
- Products and services that meet their needs and offer fair value.
Monitoring firms
We monitor which firms and individuals can enter the financial markets, making sure they meet our standards before we authorise them.
Firms can only deliver regulated activities if they’re authorised by us to do so. We then supervise[2] them to make sure they're following our rules. If we find that firms aren’t following our rules, we take action[3]. This may mean imposing fines, stopping firms from trading or securing compensation for consumers.
Understanding risks
We protect people by helping them understand some of the most common risks they might come across when using financial services.
We publish warnings[4] about firms that are doing business without our authorisation, and we encourage consumers to report scams, potential harm or bad conduct to us.
Our FCA Firm Checker[5] campaign supports the launch of the Firm Checker tool. The tool helps consumers find out if a firm is authorised and has the correct permissions to provide services. It can significantly reduce the chances of people becoming victims of fraud. Our InvestSmart campaign[6] also warns newer investors about the risks of investing online.
We want to help consumers protect themselves, so we work with consumer organisations to raise awareness of what we do. These organisations also help inform our approach to regulation.
Healthy competition
Our work to protect consumers also helps support the growth and competitiveness of the UK economy[7] and our market integrity[8].
By maintaining high standards in consumer protection, we build trust in financial services.
People need to know they can trust the firms they buy from and whether they’re protected if something goes wrong. This gives them the confidence to make choices and switch product providers.
When competition works well, consumers are empowered as well as informed. Firms compete to win their business based on service, quality, price and innovation.
