meta_id 3069120

On 16 April 2026, the Financial Conduct Authority (FCA) published its review of Year Two Consumer Duty Board reports, assessing progress made by firms in demonstrating customer outcomes and identifying areas requiring further development ahead of the third reporting cycle. The FCA found that firms have made meaningful progress in several areas. Governing bodies now formally review and approve Consumer Duty reports with explicit confirmation of compliance obligations. Boards are increasingly retaining dedicated Consumer Duty Champions, reflecting recognition that senior accountability drives cultural embedding of the Duty. Firms have also strengthened action plans with clear ownership, timelines and progress tracking, and are drawing on broader quantitative and qualitative data—including trend analysis and root cause assessments—to demonstrate customer outcomes. Enhanced monitoring of vulnerable customer segments has also been observed. However, the FCA identified areas requiring concentrated effort. Some firms presented extensive data without sufficiently explaining how it demonstrated good or poor outcomes, and Boards must push for analysis beyond management information dashboards. Monitoring of outcomes delivered through distribution chains and intermediaries remains weak, with firms struggling to identify proportionate approaches to third-party oversight. Many Boards did not adequately document the challenge they provided during reviews, making it difficult to assess how senior leaders tested evidence. Additionally, some reports focused more heavily on products and value than on customer understanding and support—core outcomes under the Duty. The FCA plans to consult on changes to rules and guidance relating to distribution chains during 2026 and will publish best practice examples of outcome monitoring. Firms should strengthen outcome monitoring, governance and distribution oversight as they prepare Year Three submissions. REFERENCE: https://www.fca.org.uk/news/news-stories/year-2-consumer-duty-board-reports-progress-and-what-comes-next