Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the Consumer Duty on people (a) with and (b) without access to mainstream financial products.

The Consumer Duty is an important part of the wider framework supporting financial inclusion. It requires regulated firms to act to deliver good outcomes for retail consumers, including by ensuring that products and services meet the needs of their target customers, provide fair value, and are supported by communications that consumers can understand

For people with access to products, the Duty helps ensure that firms identify where groups of consumers are experiencing poorer outcomes and take appropriate action to address this. The Duty applies across the customer journey, including the application process, and its focus on good outcomes can help reduce barriers to accessing and using financial services

The Consumer Duty does not require firms to provide products or services to every consumer, and the Financial Conduct Authority (FCA) cannot, on its own, address all the causes of financial exclusion. That is why it is important for the Government to coordinate efforts across industry, civil society, and the regulator to tackle the barriers to financial inclusion and help people access the financial products and services they need. We continue to work closely with the FCA on the delivery of the Financial Inclusion Strategy which is intended to do just that.