What does 'fair value' look like in practice? Three years into the Consumer Duty, here’s what we’ve learned.
Why this matters
Although the regulator's publication type is 'news', the content summarises findings from thematic reviews of fair value assessments, fees and charges, and home energy consumer hire agreements, and asks firms to challenge their own practices. That fits 'report' better than 'news'. It is tagged to Consumer Credit and Banking & Credit because it covers credit cards, credit products and consumer hire agreements. Consumer Protection / Conduct is the only supported topic. Urgency is medium because it sets expectations (e.g., 'We expect firms to read the full findings', evidence-based fair value assessment, and clear disclosure of home energy 'pay as you save' claims) without a stated compliance date.
AI-generated classification rationale, not a full analysis. Verify with the original FCA source before acting. Full disclaimer.
What the FCA said
Fair value is a simple yet important principle at the heart of the Consumer Duty: the price customers pay should be reasonable, relative to the benefits they get. But applying that principle in practice requires judgement.Three years into the Consumer Duty, we’re seeing clear differences between firms that have…
Extract from FCA . Read the full notice at the source for the authoritative text.
Context
Financial Conduct Authority (FCA) — UK financial services regulator. We track 797 updates from them.
Financial services regulation in the UK, primarily overseen by the FCA and PRA. Browse all United Kingdom updates.
This update is classified under Consumer Protection / Conduct, Consumer Credit and Banking & Credit.