FCA Consumer Duty Compliance Testing Framework

This guide outlines the implementation of the UK Financial Conduct Authority (FCA) Consumer Duty regulation, which aims to ensure fair treatment of consumers in financial services. It highlights that many organizations have only superficially complied with the regulation, falling short of its intended spirit. The document presents a compliance testing approach to bridge the gap between basic compliance and the deeper consumer experience expectations. It details the four key areas of the FCA Consumer Duty: price and value, consumer understanding, products and services, and consumer support. The guide emphasizes the importance of understanding the regulations, implementing necessary changes, and meeting consumer requirements. It introduces a systematic user-centric approach and a three-step testing strategy that includes policy and process testing, data compliance testing, and consumer experience testing. This framework is designed to help organizations identify gaps in their compliance efforts and improve their practices to foster consumer trust.