Our Financial Services Regulatory colleagues have published a blog post considering the latest developments in the possible introduction of a new “duty of care” owed by authorised persons to consumers in carrying out regulated activities under FSMA.
In particular, the article considers the legislative and regulatory developments since the FCA first published a Feedback Statement in 2019, summarising responses to its July 2018 Discussion Paper on the proposed introduction of a “duty of care”. It also looks at the timetable set out at section 29 of the Financial Services Act 2021, which requires the FCA to carry out a further consultation about whether it should make general rules providing that authorised persons owe a “duty of care” to consumers.
The new FCA consultation is expected to be published later this month, although it seems unlikely that this will suggest a new statutory duty of care.
For a more detailed analysis, please see our FSR Notes blog post.