Consumer Duty for CeMAP
Revise the FCA's wording accurately: one Consumer Principle, three cross-cutting rules and four outcomes. Similar-sounding phrases can be distractors, so learn the named rules rather than relying on a loose summary.
The Consumer Principle
A firm must act to deliver good outcomes for retail customers. This is Principle 12 and sets the overall standard under the Consumer Duty.
The three cross-cutting rules
- Act in good faith towards retail customers
- Avoid causing foreseeable harm to retail customers
- Enable and support retail customers to pursue their financial objectives
The four outcomes
| Outcome | Focus |
|---|---|
| Products and services | Products and services are designed for an identified target market and meet its needs, characteristics and objectives. |
| Price and value | The price paid is reasonable compared with the overall benefits received. |
| Consumer understanding | Communications support customers to understand products and make informed decisions. |
| Consumer support | Support meets customers' needs and avoids unreasonable barriers. |
Exam-style distinction
Do not confuse the three cross-cutting rules with the four outcomes. For example, “consumer support” is an outcome; “enable and support customers to pursue their financial objectives” is a cross-cutting rule.
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