Salford Citizens Advice
Statement on Financial Conduct Authority Consumer Duty
Summary:
The Financial Conduct Authority introduced a new obligation that means that providers of regulated debt advice services adhere to its consumer duty. This is a duty to treat our clients fairly, and to avoid harm or excessive cost to them. Our services are free at the point of delivery.
The full duty became operational from July 2024.
Additionally we “must act to deliver good outcomes for retail customers (clients) and that they can provide evidence that these outcomes are being met.”
The guidance goes on to say:
The Duty consists of rules that say how to meet this principle, these are broken down below:
- ‘Cross-cutting’ rules which require local offices to:
- Act in good faith
- Avoid foreseeable harm
- Enable and support people to pursue their financial objectives
- Rules in relation to ‘outcomes’ covering:
- Products and services
- Price and value
- Consumer understanding
- Consumer support
In addition to this, the FCA states that the Consumer Duty also supports the FCA’s wider strategic aims of:
- Fair value – consumers get fair prices and quality
- Suitability and treatment – consumers get suitable products and services, and receive fair treatment
- Confidence – consumers have strong confidence and levels of participation
- Access – diverse consumer needs are met
How we meet these obligations:
We believe that these new obligations are already met through the Advice Quality Marking scheme, as well as the Money Advice service delivery standard.
Additionally, we have appointed a lead trustee to monitor the implementation of the guidance, and to act a champion for our clients. Despite doing this we believe that all our trustees are acting as champions for our clients (or in terms of their charity law obligations, our beneficiaries).
We will also review our application of the new duty each year, commencing on the anniversary of the duty’s application.
When we change any existing service or develop a new service, we will consider the consumer duty impact on the people who use our services.
We will continue to monitor the outcomes of our advice, and comments from clients.
We also have a policy for working with vulnerable adults.
If you would like to contact our consumer duty trustee, please contact us at tom.togher@citizensadvice.org.uk.
If you would like to know more about the consumer duty itself and how it impacts on regulated organisations such as us then you can read more about it at https://www.fca.org.uk/firms/consumer-duty
Tom Togher
February 2025