New Clause 21: Financial Services Bill
New Clause 21 - Duty of care specification
(1) The Financial Services and Markets Act 2000 is amended as follows.
(2) After Section 1C insert—
“1CA Duty of care specification
(1) In securing an appropriate degree of protection for consumers, the FCA must ensure authorised persons carrying out regulated activities are acting with a duty of care to all consumers.
(2) Matters the FCA should consider when drafting duty of care rules include, but are not limited to—
(a) the duties of authorised persons to act honestly, fairly and professionally in accordance with the best interest of their consumers;
(b) the duties of authorised persons to manage conflicts of interest fairly, both between themselves and their clients, and between clients;
(c) the extent to which the duties of authorised persons entail an ethical commitment not merely compliance with rules;
(d) that the duties must be owned by senior managers who would be accountable for their individual firm’s approach.””—(Alison Thewliss.)