Consumer Duty: what it means for Financial Services and you

The Financial Conduct Authority (FCA) Consumer Duty has raised the bar for financial services. For clients, it’s really about something simple – providing you with advice and solutions that are clear, fair and genuinely focused on you. 

By Claire Mellon, Chief Client Officer  

Introduction 

When the FCA introduced Consumer Duty in 2023, it signalled a major change in how financial services should work – one that puts people, not products, at the centre. 

While the Consumer Duty sets new standards for the industry, at Cohesion it reinforces what we already believe: acting in our clients’ best interests isn’t a rule, it’s our foundation. As members of the Consumer Duty Alliance, we’re proud to be part of a community committed to raising standards and improving outcomes for clients across the UK. The Consumer Duty simply gives structure to the values we’ve always lived by – clarity, connection and care. 

What is Consumer Duty? 

Consumer Duty is the FCA’s framework for ensuring firms deliver good outcomes for clients. It goes beyond box-ticking and focuses on the experience people have when receiving advice or financial products. 

It is built around three key principles (known as cross-cutting rules) which guide how firms should behave in all areas of their work: 

1. Act in good faith: Treat clients fairly at every stage and make sure products and services are right for the client and deliver what’s promised. 

1. Avoid foreseeable harm: Proactively identify and manage risks so clients aren’t exposed to unnecessary detriment. 

1. Enable and support clients to pursue their financial objectives: Ensure every recommendation, product and interaction genuinely helps clients achieve their goals. 

These rules underpin four outcomes that set clear standards for the industry: how products and services are designed, the value they offer, the clarity of communication, and the level of support clients receive. 

In essence, it’s about doing the right thing, consistently, transparently, and with purpose. 

Why it matters for you 

If you’re a client, you might not notice Consumer Duty in action and that’s the point. It’s designed to make your experience smoother, more transparent and more supportive behind the scenes. 

Here’s what it means in practice: 

• Clarity: You’ll receive information that’s easy to understand, not full of jargon. 

• Confidence: Recommendations must suit your needs, objectives and comfort with risk. 

• Connection: You’ll be kept informed throughout your journey, with regular reviews and open communication. 

Ultimately, it’s about giving you the confidence that every conversation, document and recommendation is designed with your best interests in mind. 

What it means for Financial Services 

Behind the scenes, firms have been reviewing everything, from how they design products, to how they measure success. That includes: 

• Product design and governance: Making sure services genuinely suit the people they’re intended for. 

• Client communication: Reviewing language and presentation to ensure clarity. 

• Monitoring outcomes: Regularly checking that advice and products deliver the results clients expect. 

While these may sound like technical changes, the impact is very real: advice that’s simpler to follow, easier to understand and more aligned to your goals. 

How we apply it at Cohesion 

For us, Consumer Duty isn’t a new rulebook – it’s a validation of our approach. From the day we founded Cohesion, our focus has been to help people make confident financial decisions through: 

• Clarity: Explaining the complex in plain English. 

• Support: Guiding you at every stage of your financial journey. 

• Individual focus: Shaping our guidance around what matters most to you – your goals, values and priorities. 

We see Consumer Duty as formalising what we already do: acting with integrity, communicating clearly and making sure every client feels informed, supported and understood. 

What this means for our clients 

• Ask questions: Good advice invites conversation and discussion. 

• Expect transparency: Costs, risks and benefits should always be explained clearly. 

• Look for ongoing care: Financial advice doesn’t end at the recommendation – it’s about continuous support. 

If at any point you feel unsure or want to revisit your plan, that’s exactly what Consumer Duty encourages: open, proactive, communication that keeps you in control. 

Bringing it all together 

Consumer Duty has raised the bar for financial advice across the UK, creating more openness, fairness and trust between clients and advisers. 

For us at Cohesion, it reinforces what we stand for – clarity in communication, connection with purpose and care that lasts long after the first conversation. 

Clarity begins with connection.
If you’d like to understand how Consumer Duty enhances  your experience as a client, we’d love to talk to you about how we put it into practice every day. Connect with us here. 

Disclosures

This content is for information purposes only and does not constitute financial advice, which should be based on your individual circumstances. The information and guidance provided is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.