In October 2016 the FCA published a consultation document on its future mission. The document was designed to provide a guiding set of principles around the strategic choices the FCA makes and will inform the regulator’s future strategy and day-to-day work. The consultation closed on 26 January 2017. Our blog on the consultation is here.
The City of London Law Society (CLLS) has now published its response to the FCA’s consultation.
In the FCA consultation document the FCA stated, among other things, that it welcomed views on whether it was necessary for the regulator to have a duty of care rule. The FCA feels that having such a rule is not necessary on the basis that the FCA Principles are themselves FCA rules and that they include an obligation on firms to treat customers fairly. However, customers cannot bring civil claims based on an alleged breach of Principle 6 (the duty to treat customers fairly) alone.
In its response the CLLS is also of the view that an express duty of care rule is not necessary. Among other things the CLLS notes that the FCA Principles impose an obligation to treat customers fairly and a requirement under the Conduct of Business sourcebook for firms to act honestly, fairly and professionally in accordance with the best interests of their client. It also notes that the FCA has powers to direct firms to provide redress to customers. Other sources of redress also exist outside of the FCA’s regulatory perimeter that consumers are able to available themselves of (for example, consumer protection legislation).
View The City of London Law Society response to FCA ‘Our future mission’ consultation, 17 February 2017