The Financial Conduct Authority published findings from a supervisory review of how firms monitor customer outcomes under the Consumer Duty, concluding that stronger approaches are structured, evidence-based and linked to action, while weaker ones often stop at collecting management information without showing how it identifies harm or improves outcomes. The review stresses that monitoring must cover all four Consumer Duty outcomes and the full customer journey, with firms able to explain what their information shows, how it is used to spot risks, what action follows and whether that action worked. The findings apply across sectors and to firms of all sizes, with the FCA noting that smaller firms can take a proportionate approach if it is clear, risk-based and actionable. Across strategy, data and governance, the FCA highlights that good practice involves defining what good outcomes look like for specific products and journey stages, using measurable indicators and thresholds, and combining complaints, customer feedback, operational data and testing to detect foreseeable harm, including for customers in vulnerable circumstances. Stronger firms also kept clear audit trails from issue identification to remedial action, tested whether interventions reduced friction or harm, and monitored outcomes across third parties and distribution chains. Areas for improvement included high-level frameworks not tied to customer journeys, reliance on operational activity metrics as proxies for outcomes, reactive or poorly evidenced indicators, limited segmentation of vulnerability data, weak testing of remedies, and boards receiving outcome reports without clear evidence of challenge, decision-making or follow-through. The FCA says firms should use the review to assess whether their own monitoring gives them a clear enough view of customer outcomes and whether it supports timely action where poor outcomes or emerging risks are identified.
Financial Conduct Authority2026-07-17
Financial Conduct Authority review finds weaknesses in Consumer Duty outcomes monitoring and sets out good practice
The Financial Conduct Authority published review findings on how firms monitor consumer outcomes under the Consumer Duty. It found stronger firms use clear outcome definitions, customer-journey monitoring and governance that drives action, while weaker firms rely on high-level or reactive management information and cannot evidence how issues are identified, escalated and fixed. Firms are expected to reassess whether their monitoring provides a clear view of customer outcomes.