The Financial Conduct Authority has published findings from its review of how firms are designing, monitoring and distributing products and services under the Consumer Duty. The review found that many firms have strengthened product governance, improved monitoring of customer outcomes and taken greater responsibility for what happens after products are sold, but practice remains inconsistent across the market. The FCA said the report is intended to provide examples of good practice and areas for improvement and does not create new regulatory requirements. The findings draw on a qualitative survey carried out in October 2025 covering 38 firms across banking, insurance, payments and e-money, asset management, consumer investments, funeral plans and consumer finance. Stronger practice included using customer research to define more granular target markets, embedding product governance into business-as-usual decision-making, using broader management information such as complaints, customer feedback and behavioural indicators, and setting clearer expectations for distributors. The FCA cited examples where firms changed products or customer journeys in response to monitoring, including a banking firm that reduced complaints about ATM withdrawals by 45% over three months after clarifying app information and improving staff training. Areas for improvement included generic target market definitions, a focus on identifying vulnerable customers without enough evidence of adapting products to their needs, weak links between monitoring and remedial action, limited evidence supporting chosen distribution strategies, and insufficient validation that product or distribution changes improved customer outcomes. The FCA said firms should use the findings to review their own products and services and identify where improvements are needed. It also pointed firms to its consultation on the scope and proportionality of the Duty, noting that firms may wish to consider that work before making major process changes.
Financial Conduct Authority2026-07-10
Financial Conduct Authority finds progress but uneven Consumer Duty product governance and distribution oversight
The Financial Conduct Authority published findings from its review of firms' product design, monitoring and distribution under the Consumer Duty. It found stronger product governance and better outcome monitoring in many firms, but also identified gaps in target market definition, use of monitoring data and oversight of third-party distribution. Firms are expected to use the findings to review their own products and services and make improvements.