The Financial Conduct Authority (FCA) has announced that its new Consumer Duty rules, designed to raise the standards of consumer protection for consumers, have now come into force.

The new rules, launched on Monday, pledge that consumers should receive communications which are comprehensible; the support consumers need when they need it; and products and services that meet consumers’ needs and offer fair value.

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

Expanding on the coverage the new rules enable, the FCA said fairer products and services should mean consumers “won’t be ripped off” or have to pay costs they didn’t expect.

The rules also mean that firms should offer consumers products and services that are right for them, rather than “pushing” products and services they don’t need.

Clearer information for consumers should also mean that important information “shouldn’t be buried in lengthy terms and conditions”.

Consumer Duty also means that firms are mandated to determine whether consumers are in a vulnerable situation when dealing with them.

The rules follow research by the FCA which found that 7.4 million consumers unsuccessfully tried to contact one or more of their financial services providers in the 12 months before May 2022.

The FCA previously warned that firms who do not comply with the new rules will face "swift action".

“Our supervisory and enforcement approach will be proportionate to the harm – or risk of harm - to consumers, with a sharp focus on outcomes,” said FCA executive of consumers and competition Sheldon Mills. “We will prioritise the most serious breaches and act swiftly and assertively where we find evidence of harm or risk of harm to consumers."

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