BLM's Alistair Kinley and Lucy Tolond write for Insurance Day and discuss whether a statutory duty of care should be introduced for regulated firms as we await the new paper from the Financial Conduct Authority (FCA).
Looking back at the previously published FCA Discussion Paper and Feedback Statement, it explored (as part of its statutory objective to secure an appropriate degree of protection for consumers) whether the existing Principles for Business are sufficient or applied effectively enough to prevent customer detriment/harm, or if a new specific duty might need to be introduced.
Alistair and Lucy state, "The majority of stakeholders do not support a statutory duty, whether actionable at common law or not. The suggestion is that the Senior Managers & Certification Regime, in conjunction with the existing principles for business, is already bringing about the change needed and amounts to a sufficiently robust duty on firms."
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