FCA Consumer Understanding review – what firms should do now

The FCA has published a new review on consumer understanding under the Consumer Duty, setting out what good and poor practice looks like in real terms.

While this is not new rulemaking, it is a clear signal of how the FCA expects firms to evidence that customers understand their products, communications and decisions.

The focus is on practical delivery: using real customer insight, testing communications properly, embedding vulnerability and making sure governance drives action rather than just reporting.

We have summarised the key points and practical implications in our latest note - download it here.

If you would like to discuss how this applies to your business or sense check your current approach, please do get in touch.