UK consumers have significant legal and regulatory rights when dealing with financial firms. These rights are protected and enforced by the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS). This guide explains the most important ones.
This guide is for general information only. It is not legal or financial advice. For guidance specific to your situation, consult the FCA, the FOS or Citizens Advice.
The right to fair treatment
The FCA's Consumer Duty, introduced in July 2023, requires financial firms to act to deliver good outcomes for customers. This means firms must offer products and services that are suitable, communicate in a way that is clear and fair, and provide support that meets customers' needs.
This is a significant strengthening of the regulatory framework. Firms that do not meet these standards are in breach of FCA rules.
The right to clear information
Financial firms must provide clear, fair and not misleading information about their products. This includes fees, risks, terms and conditions and any conflicts of interest. If information was not provided clearly, this may be relevant to a complaint about mis-selling.
The right to complain
All regulated financial firms must have a complaints procedure. They must acknowledge complaints promptly and respond within eight weeks. You have the right to refer unresolved complaints to the Financial Ombudsman Service for free.
The right to access your information
Under data protection law, you have the right to request copies of information a firm holds about you. This is called a Subject Access Request (SAR). It is free. Firms must respond within 30 days. This can be useful if you are considering a complaint and need to review your original documentation.
The right to cancel
For many financial products, you have a cooling-off period during which you can cancel without penalty. The length of this period varies by product type. The firm is required to tell you about this right at the time of sale.
The Financial Services Compensation Scheme (FSCS)
If a regulated financial firm goes out of business, the FSCS may be able to compensate you. Coverage limits vary by product type. Deposits in banks and building societies are covered up to £85,000 per person per institution. Check the FSCS website for current coverage details.
How to exercise your rights
The FCA publishes consumer-facing guidance on all of these rights at fca.org.uk. The Financial Ombudsman Service at financial-ombudsman.org.uk handles complaints if firms do not resolve issues satisfactorily. Citizens Advice provides free help navigating these processes.
Secure payment via Stripe. Cancel anytime.
AskFin is not a claims management company. This guide is general educational information only.