The Financial Conduct Authority (FCA) has called on financial services providers to prepare for the upcoming Consumer Duty, which comes into force in less than 90 days.

New firms as well as regulated firms will need to comply with the overarching principle of the Duty from 31 July, which stipulates that consumers should receive communications they can understand, products and services that meet their needs and offer fair value, and get the customer support they need, when they need it.

In a speech delivered on Wednesday, FCA executive of consumers and competition Sheldon Mills said that firms that ignore the new rules or who pose the most risk will face “swift action”.

Mills said that in some cases the regulator will take robust measures, including interventions, investigations, and disciplinary sanctions.

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

Earlier this year, the financial watchdog warned that there are still some financial services firms behind on planning for the Duty.

The FCA reviewed a sample of implementation plans, finding that while many firms have shown they understand the shift by establishing extensive programmes of work to comply with it properly, others risk struggling to apply the Duty as they have not yet put in place sufficient planning.

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