Consumer Duty shows up across nearly every CeMAP unit, and it's consistently one of the topics candidates get wrong most — usually because the wording is precise and the four outcomes and three obligations get blurred together. Here's the clean version.
The FCA's Consumer Duty requires firms to act to deliver good outcomes for retail customers. It's a higher, more outcomes-focused standard than the older Treating Customers Fairly (TCF) principle it builds on.
| Outcome | What it covers |
|---|---|
| Products and services | Products are designed to meet the needs of the customers they're targeted at |
| Price and value | The price a customer pays is reasonable relative to the benefits they receive |
| Consumer understanding | Communications are clear, and customers can make informed decisions |
| Consumer support | Customers get the support they need, when they need it, without unreasonable barriers |
Alongside the four outcomes, firms must meet three cross-cutting obligations. These are commonly confused for each other on exam papers because they sound similar but are legally distinct:
A typical exam question will list three of these plus a decoy (e.g. "fair treatment of customers," which is the older TCF framing, not one of the three Consumer Duty obligations) and ask which one is NOT a cross-cutting obligation. Knowing the exact three — not an approximation — is what separates a pass from a near-miss here.
The Consumer Duty requires firms to adhere to three cross-cutting obligations, which include all of the following, EXCEPT:
Answer 4 questions and get your readiness score, pass probability and the exact topics to study first.
Take the free assessment →The Consumer Duty requires firms to act to deliver good outcomes for retail customers across four outcome areas: products and services, price and value, consumer understanding, and consumer support.
Firms must act in good faith towards customers, avoid causing them foreseeable harm, and enable and support customers to pursue their financial objectives. These are three distinct obligations, not restatements of the same idea.
Yes. It appears across FRE1 (regulation), FRE2 (skills, principles and ethical behaviours) and is referenced in the mortgage units where advice suitability is discussed.