The Financial Conduct Authority (FCA) has pledged to be clear with the industry about what actions will be required when its Consumer Duty comes into force.
The regulator said it plans to embed its new Consumer Duty in its supervision and enforcement regime so it increasingly focuses on consumer outcomes.
Within its three-year strategy plan, the FCA said the move, combined with its more data-led approach should enable it to more quickly identify practices that negatively affect those outcomes and to intervene assertively before these practices become entrenched.
It added: “We will be clear with firms what we expect to see and the actions they should take. We expect outcomes-based regulation to adapt to technological change and market developments, meaning
consumers are protected from new and emerging harms and firms can innovate to find new ways of serving their customers with certainty of our regulatory expectations.”
In order to successfully measure the success of its proposals, the FCA said it would do this by monitoring key outcomes for consumers.
Through using its wider consumer protection powers, the FCA further committed to addressing harm where it sees poor practice, including in cases where the product or service may not be regulated and will also continue working with government and partners to support financial inclusion in financial services.
