On 31 July, new rules came into force for UK financial services firms, the Financial Conduct Authority (FCA) confirms. The new rules, known as the Consumer Duty, set a higher standard of consumer protection in financial services.

The Duty means you should get:

• the support you need, when you need it
• communications you understand
• products and services that meet your needs and offer fair value.

The FCA is closely monitoring how firms are putting the new rules in place and will take action against those that aren’t following them.

Under the Duty, firms should be open and honest, avoid harm, and support you to pursue your financial goals. You should expect:

• helpful and accessible customer support, so it’s as easy to sort out a problem, switch or cancel your product, as it was to buy it in the first place
• timely and clear information you can understand, so you can make good financial decisions. This means important information shouldn’t be buried in lengthy terms and conditions
• providers to offer products and services that are right for you, rather than pushing products and services you don’t need
• products and services to provide fair value. This should mean you won’t be ripped off or have to pay costs you didn’t expect. But while your provider should offer you a fair price, it doesn’t mean it will be the best deal for you, so you should still shop around
• firms to consider if you’re in a vulnerable situation when dealing with you. This could be due to poor health or financial troubles, for instance.

These rules apply to all new and existing products and services that are currently on sale. For older products that are no longer on sale, the rules will apply from 31 July 2024.

If you have a problem with your provider, or you don’t feel they’re meeting the Duty’s standards, you should complain to them. If you’re unhappy with their response, then you should contact the Financial Ombudsman Service.