Consumer Duty is probably one of the most significant regulatory changes from the FCA in recent years. Building on previous regulations around 'Treating Customers Fairly' and 'Vulnerable Customers', the Duty is about how we do business with, and how we treat, our customers throughout their time with us.

LGIM has always had a dedicated focus on Customer Values and we have established through our review process that many of our existing procedures already adhere to the standards of the Duty. Ahead of its implementation, we added additional governance so that we can fully demonstrate the significance of the Duty in the way we conduct business on behalf of our clients.

What is the Consumer Duty?

The FCA’s Consumer Duty is designed to set higher and clearer standards of consumer protection across financial services and requires firms to put their customers’ needs first.​

The Duty introduces a new principle, Principle 12: ‘a firm must act to deliver good outcomes for retail customers.’

This principle is supported by three Cross-cutting Rules and four customer outcomes.

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What are the three Cross-cutting Rules?

What are the four consumer outcomes?

While LGIM already has well-established product governance and consumer-focused business arrangements, Consumer Duty gives us the opportunity to enhance our services across our offering.

LGIM is supporting you and your clients by addressing the four consumer outcomes in the following ways:

The Consumer Duty and LGIM

At LGIM we consider that many of the key principles of the Act are already embedded into our existing processes. We will continue to support good outcomes for our retail clients, and to enhance the processes we currently have in place, to make sure that the investment objectives of our products, services, and supporting materials comply with the Consumer Duty regulation.

Further information

You can find out more about the Consumer Duty itself on the FCA’s Consumer Duty page

Legal & General (Unit Trust Managers) Limited, as manufacturer of funds, gives notice to all distributors of its funds, of their respective information-sharing obligations under the Consumer Duty effective from 30 April 2023. Our message to all ‘Distributors’ under the Consumer Duty