By Victoria McCarron and Alex Gillespie

On the 3rd February, the FCA sent out a letter to firms in the Asset Management, Custody & Fund Services and Alternatives portfolios, providing guidance on how to implement and embed the Consumer Duty (the "Duty") effectively.

The letter sets out:

• A reminder of the implementation timeline, key elements of the Duty and how it applies to firms in Asset Management, Custody & Fund Services and Alternatives portfolios.
• The FCA’s expectations for how firms should embed the Duty in Asset Management, Custody & Fund Services and Alternatives portfolios, including relevant examples of good and poor practice.
• Feedback from the FCA’s recent review of firms’ implementation plans.
• The FCA’s approach to supervising the Duty in Asset Management, Custody & Fund Services and Alternatives portfolios and planned next steps.

The letter contains annexes providing information on how the Duty applies specifically to each type of firm and key things for these firms to consider.

A copy of the letter can be found here. For further UK financial services regulatory updates, please visit the Burges Salmon blog.