Financial Services Bill — New Clause 21 — Duty of Care Specification — 13 Jan 2021 at 18:00

The majority of MPs voted against requiring bankers, financial advisors, and others in the financial services industry who carry out activity regulated by the Financial Conduct Authority, to act with a duty of care to consumers.

MPs were considering the Financial Services Bill.^[1][2]

The proposed new clause which was rejected in this vote was titled: Duty of care specification and stated:

• (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.”

FCA is a reference to the Financial Conduct Authority.^[2]

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• [1] Parliament's webpage on the Financial Services Bill, Parliament.uk
• [2] Explanatory notes to the Financial Services Bill, Parliament.uk

Debate in Parliament |