The Financial Conduct Authority (FCA) has issued a fresh reminder to financial services firms to ensure they are ready for the 31 July Consumer Duty deadline.

In a speech delivered at an EY event today, executive director of consumers and competition at the FCA, Sheldon Mills, warned that firms who ignore the Duty or who pose the most harm can expect swift action.

The regulator has previously suggested its Consumer Duty will represent a “paradigm shift” in its expectations of firms, with the Duty to introduce a new consumer principle that requires firms to act to “deliver good outcomes for retail customers”.

In his latest speech, Mills said that the FCA’s supervisory and enforcement approach will be “proportionate” to the harm to consumers, with a “sharp focus” on outcomes.

“We will prioritise the most serious breaches and act swiftly and assertively where we find evidence of harm or risk of harm to consumers,” he said. “In some cases, firms can expect us to take robust action, such as interventions or investigations, along with possible disciplinary sanctions.”

Mills also acknowledged the work undertaken by financial services firms to implement the Duty and set out how it could boost the competitiveness of the sector.

He added: “Since we published our final rules and guidance in July last year, the financial services industry has worked with us to meet Parliament’s will to implement the new Consumer Duty. The 52 million financial services consumers in the UK rely on the sector to deliver good outcomes, and should be even better protected from harm, particularly in these challenging economic times.

“If applied correctly by firms, the Consumer Duty should help firms retain and attract customers and will enhance the competitiveness of our financial services sector.

“The Duty will mean that consumers should receive communications they can understand, products and services that meet their needs and offer fair value, and they get the customer support they need, when they need it.”

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