Consumer Duty: Scope and Definitions
Scope and Application [PRIN 2A.1]
Rule: The Consumer Duty applies to all FCA-authorised firms that provide products or services to retail customers, including firms in the distribution chain.
Who is Covered
| Entity Type | Covered? | Notes |
|---|---|---|
| Product manufacturers | Yes | Design, develop, issue, manage retail products |
| Distributors | Yes | Offer, sell, recommend, arrange products |
| Firms in distribution chain | Yes | Even without direct customer relationship |
| B2B-only firms | No | Unless part of retail distribution chain |
| Professional clients only | No | Only retail customers in scope |
Key Definitions
Retail Customer
A customer who is not a professional client or eligible counterparty. The Duty protects individuals and small businesses dealing with regulated financial services.
Product
Any product, service, or combination offered to retail customers, including:
- Banking products (accounts, loans, mortgages)
- Insurance and protection products
- Investment products
- Payment services
- Consumer credit
Distribution Chain
All firms involved in the manufacture, marketing, distribution, and servicing of a product to the retail customer.
Territorial Scope
| Scenario | In Scope? |
|---|---|
| UK firm, UK customer | Yes |
| UK firm, overseas customer | No (generally) |
| Overseas firm, UK customer | Yes (if authorised/exempt) |
| Closed products (from July 2024) | Yes |