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Consumer Duty · Applicability tool

Does Consumer Duty apply to my firm? — decision tool

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Published 14 July 2026

The FCA Consumer Duty applies to FCA-regulated firms serving retail customers. But applicability isn't always obvious — some activity types are excluded, some indirect activity is covered, and cross-body regulated firms may fall in scope through parallel frameworks. This decision tool walks through the applicability tests.

Step 1 — Is your firm FCA-regulated?

If YES

Proceed to step 2. Consumer Duty may apply.

If NO

Consumer Duty is not directly in scope but parallel professional-body conduct rules may impose similar expectations (SRA, ICAEW, ARB, RICS Code interactions with retail clients).

Step 2 — Do you serve retail customers?

‘Retail customer’ under FCA definition means an individual acting for purposes outside their trade, business or profession, or a small business meeting certain criteria.

If YES

Consumer Duty applies to that segment of your business. Proceed to step 3.

If NO (wholesale only)

Consumer Duty doesn't apply. But note: FCA has flagged intent to look at wholesale-to-retail chains where wholesale conduct affects retail outcome.

Step 3 — Which activities are in scope?

Retail-consumer product design, distribution, communication, and support. Not typically in scope:

In scope for typical FCA-regulated professional firms:

Step 4 — What's the assessment period?

New products

Applied from July 2023.

Closed books / existing products

Applied from July 2024. Full retrospective application to legacy products.

Common edge cases

Dual-regulated firms (FCA + professional body)

Where the firm is FCA-regulated AND separately regulated by SRA, ICAEW, or another professional body, both frameworks may apply. Coordinate compliance approach.

Firms with mixed retail and wholesale customers

Consumer Duty applies to the retail segment. Firm-level processes should identify and treat retail customers under Consumer Duty framework.

Chartered accountants with FCA-authorisation for investment business

Where DPB-regulated investment-business activity is provided to retail consumers, Consumer Duty applies to that activity.

Firms considering scope-adjustment to fall outside

Restructuring to exit retail activity to avoid Consumer Duty is a rulebook question. FCA has discouraged this as an approach.

What to do if Consumer Duty applies

  1. Appoint a Consumer Duty Champion at board level.
  2. Complete the initial fair-value assessment and document it.
  3. Review communications and consumer-understanding.
  4. Establish vulnerable-customer identification and support framework.
  5. Update PI wording to cover Consumer Duty defence.
  6. Complete annual board report under the Consumer Duty framework.

Frequently asked

Am I subject to Consumer Duty as a UK solicitor?
Not directly under FCA rules. But the SRA has published parallel guidance. Where you serve consumer clients, similar principles apply through SRA conduct framework.
Am I subject as an insurance broker?
Yes if FCA-authorised (which all commercial brokers are) AND you serve retail customers. Retail is defined under FCA rulebook.
What about small-business customers?
Some small businesses count as retail under FCA definition (fewer than 10 employees + certain financial thresholds). Check specific rulebook definitions for your activity.
Does Consumer Duty apply to accountancy?
Not directly for ICAEW-regulated activity. But where the firm is separately FCA-authorised for investment business under DPB rulebook, Consumer Duty applies to that activity.
What's the FCA enforcement approach?
FCA has emphasised supervisory monitoring over immediate enforcement. Focus on evidence of firm-level Consumer Duty embedding. Egregious failures attract enforcement.

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