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DP18/15 A Duty of Care: Brexit Discussions

17th September 2018

DP18/15 A Duty of Care: Brexit

In July, the FCA published a Discussion Paper on Duty of Care and potential alternative approaches in light of the UK’s exit from the EU.

As detailed in the FCA’s Mission for 2017, the regulator committed to produce a Discussion Paper to explore the merits of ‘a duty of care’ as part of their Handbook Review following Brexit in 2019.

The regulator has stated the “it would be difficult to make extensive changes to the FCA Handbook at the same time as undertaking the major overhaul needed to put the EU Withdrawal legislation into effect”.

The FCA are hoping that the launch of this Discussion Paper, DP18/15, will help them to more fully understand what outcomes a New Duty might be able to achieve and what a New Duty for firms in financial services might do to enhance behaviour in the financial services market.

In particular the regulator is interested in:

• Better understanding whether there is a gap in their regulatory and legal framework, or the way that thy apply it in practice, that could be addressed by a New Duty;
• Better understanding and consideration of the possible alternative approaches that might address stakeholders’ concerns;
• Understanding of what a New Duty for firm might do to enhance good conduct and culture in financial services, including how this could influence consumer outcomes, alongside the Senior Managers and Certification Regime (SM&CR); and
• Assessing whether change is desirable and if so, what form it could take, how it would work in practice alongside their current framework, and what consequences it would have for consumers, firms and the regulator.

Views from all parties with an interest in this issue are invited, which includes:

• Consumer groups and individual consumers.
• Industry groups / trade bodies.
• Regulated firms.
• Policy-makers and regulatory bodies.
• Industry experts and commentators.
• Academics and think tanks.

Views and responses to the FCA’s questions that they pose within DP18/15 should be returned to the FCA by 2nd November 2018.

In addition, the FCA will be holding a firm event on 26 September 2018 plus a roundtable discussion for consumer organisations and their representatives on Tuesday 2 October 2018.

More information about either of the events can be obtained by emailing the FCA at dutyofcare@fca.org.uk

Read our latest articles, news and views affecting compliance and regulation in the UK Financial Services Industry.