Compliance Confessionals – A comparative analysis of US consumer protection regulations and the FCA’s Consumer Duty

Compliance expert and former Head of Compliance, Sylvia Yarbough, shares secrets and insights from the heart of the compliance team.

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In this thought-provoking review of the Financial Conduct Authority’s (FCA) Consumer Duty regime, compliance expert, Sylvia Yarbough, draws a compelling comparison between the UK’s principles-based approach and the United States’ proscriptive consumer protection laws.

With a focus on increasing consumer protection and promoting fair practices in the financial services market, the Consumer Duty introduces a series of principle-based standards that request firms to prioritize fair outcomes throughout the entire consumer journey. Yarbough explores the Duty’s four outcomes—governance, price and value, consumer understanding, and consumer support—and highlights the contrasts with US regulations and guidance. From the need for assessing target markets and product value to enhancing customer communications and support systems, she delves into the implications for US compliance teams and suggests potential changes needed in the US regulatory landscape.

With the Duty offering a promising framework, Yarbough invites the US to observe its implementation and consider adopting similar principles to elevate conduct and ethics in the financial industry.