Which FCA principle requires a firm to act to deliver good outcomes for retail customers?

• A. Consumer duty: Firm must act to deliver good outcomes for retail customers
• B. Observe proper market conduct standards
• C. Financial prudence
• D. Management and control

Answer: (A)

The FCA Consumer Duty is the principle that requires firms to act to deliver good outcomes for retail customers. It focuses on the actual results customers experience, not just processes or rules. This means products and services should be designed with the customer in mind, priced fairly, clearly explained, and supported by appropriate after-sales service. Firms must monitor outcomes for retail clients and adjust practices to maintain or improve those outcomes over time.

This is why it’s the best answer: it explicitly centers on delivering good outcomes for retail customers, whereas the other options relate to broader or different regulatory aims—observing market conduct standards governs behavior and integrity in markets, financial prudence concerns the firm’s financial soundness, and management and control deal with governance and internal risk management.