FCA Consumer Duty

FIA has worked with its members and external counsel on producing a guidance document ("Guidance") that provides an overview of the scope of application of the FCA's Consumer Duty rules and guidance, focusing on how these requirements apply in respect of execution of exchange traded derivatives ("ETDs") and clearing of cleared derivatives, in scenarios where these services are provided to retail funds or as part of a chain of providers involving an end retail customer. The Guidance sets out practical guidance of features and other indicators of the likely application (or non-application) of the Consumer Duty in two main scenarios, as further described in this Guidance.

FIA members should note that the application of the FCA's Consumer Duty rules and guidance is very fact specific and so firms will need to make their own assessments and determinations of whether or not the FCA's Consumer Duty applies to their activities in respect of ETD execution and clearing of cleared derivatives. This Guidance is not intended to provide legal advice on the application of the Consumer Duty to any specific FIA member firm's business, nor does it provide an exhaustive description of the FCA's Consumer Duty rules and guidance.