Consumer Duty

What Consumer Duty means for Raymond James

The Consumer Duty, a regulatory framework introduced by the FCA on 31 July 2023, imposes higher standards of consumer protection on firms.

The Consumer Duty introduces a new Consumer Principle that provides a high-level expectation of conduct and associated outcomes:

Principle 12: A firm must act to deliver good outcomes for retail customers

New cross-cutting rules set the overarching conduct which firms must demonstrate when they act to deliver good outcomes for retail customers:

Consumer Duty further enhances TCF and Conduct with four specific outcomes, which are a suite of rules and guidance setting more detailed expectations for a firm’s conduct. These four specific outcomes represent the key elements between firms and their relationships with consumers:

  • Products and services
    Products and services are designed to meet the needs of consumers, and sold to those whose needs they meet
  • Price and value
    The price of products represents a fair value for retail customers in the target market for those products
  • Consumer understanding
    A firm must support retail customer understanding so that its communications:
    • meet the information needs of retail customers
    • are likely to be understood by retail customers
    • equip retail customers to make decisions that are effective, timely and properly informed
  • Consumer support
    A firm must design and deliver support to retail customers so:
    • it meets the needs of those customers (including vulnerable customers)
    • it ensures products can be used as anticipated
    • it includes appropriate friction in its customer journey to mitigate the risk of harm
    • retail customers do not face unreasonable barriers

Raymond James’ approach to the Consumer Duty

The Raymond James Client First culture, and our business strategy of supporting clients and their wealth managers, align well with the Consumer Duty. However, the Consumer Duty regulation has been an excellent opportunity for us to ensure that:

Moving forward

Considering the firm’s long-established culture of Client First, Raymond James fully endorses the principles of Consumer Duty. We believe that they are aligned with our vision to be a financial services firm as unique as the people we serve, transforming lives, businesses, and communities through the power of personal relationships and professional advice.

We will continue to challenge ourselves to enhance and develop the services we provide our clients and ensure good consumer outcomes.

Back to Personal Investing