The FCA published a Discussion Paper on a duty of care and potential alternative approaches (DP18/5) on 17 July 2018.

The FCA is exploring whether there should be a duty of care in the financial services sector. It is doing so via a Discussion Paper at this stage, as the regulator is conscious that the debate around this issue is complex, and there are strongly held views on both sides. Some stakeholders argue that the current framework does not provide adequate protection for consumers, and that introducing a duty of care might not only provide an additional avenue for redress, but might also serve to prevent poor consumer outcomes in the first place. For example, there are concerns that the Principles for Businesses do not remove conflicts and do not positively incentivise good conduct. Other stakeholders, however, argue that a duty of care would add an unnecessary layer of complexity and uncertainty to the regulatory regime, could lead to unintended consequences, and would be very difficult to formulate appropriately.