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The Consumer Duty Act 2023 (‘CDA’)

The Consumer Duty Act 2023 (‘CDA’) is a new piece of legislation that imposes new obligations for financial services firms. These obligations are designed to protect consumers and ensure that they receive good quality services from firms.

One of the key obligations under the CDA is the requirement for firms to provide value for money to their customers. This means that firms must ensure that the products and services they offer are fair and reasonable in price, and that they meet the needs of their customers.

  • Be transparent about fees and charges: customers should be able to easily understand how much they will be charged for a product or service. Firms should provide clear and concise information about fees and charges, and they should not charge hidden or excessive fees.
  • Provide clear and accurate information: customers should be able to trust that the
    information they receive from a firm is accurate and complete. Firms should avoid making
    misleading statements or omitting important information.
  • Be responsive to customer needs: firms should be willing to listen to customer feedback and take action to address any concerns. They should also be proactive in communicating with customers about changes to products or services.

Financial advisers will need to deliver good outcomes for their customers, which means meeting their needs and expectations. This includes providing products and services that meet their needs, managing their risks, and helping them achieve their financial goals.

The FCA has a range of powers to enforce compliance with the CDA, including:

  • Imposing fines of up to £10 million for individuals and £50 million for firms
  • Banning individuals from working in the financial services industry
  • Disqualifying firms from carrying on certain regulated activities
  • Requiring firms to pay compensation to consumers who have suffered losses as a result of noncompliance

The CDA is a significant piece of legislation that will have a major impact on the financial services industry. Financial advisers will need to take steps to comply with the new requirements, which will mean making changes to their business practices and procedures


The CDA requires advisers take into account all of their clients' needs, including their need for estate planning. Advisers should therefore be willing discuss wills with their clients and help them to put one in place.

Helping valued clients protect their estates by giving clear demonstrable advice on how to access quality estate planning advice is one way for advisory firms to demonstrate they understand the needs of their clients.

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