Consumer duty puts the onus on firms to deliver good outcomes for consumers: FCA CEO Nikhil Rathi
The FCA plans to introduce the consumer duty on 31 July 2023.
By Nikhil RathiNov 17, 2022
UK financial watchdog boss has said that the consumer duty, which will come into force on 31 July 2023, puts the onus on firms to act to deliver good outcomes for consumers.
"Parliament debated and explicitly mandated the consumer duty due to falling public confidence in retail financial services. It urges firms to act in good faith, avoid causing foreseeable harm and support customers to pursue their financial objectives.The duty leads firms to consider what that looks like and to take decisions in good faith," said Nikhil Rathi, CEO of the Financial Conduct Authority (FCA), while speaking at the UK Finance Annual Dinner on Wednesday (16).
Rathi revealed that there is no need for the deadlines to move again as "firms are on track".
Introduced by the FCA, the consumer duty aims to deliver higher and clearer standards of consumer protection for retail customers of financial services and requires firms to put their needs first.
"Firms must also give customers information that they can understand, point customers to products, services and post-sales support that meet their needs and offer fair value. These principles are not controversial. After extensive feedback, we introduced a phased. deadline to help firms embed what is undoubtedly a major cultural and operational shift," Rathi said.
"We will remain pragmatic in our oversight of implementation and ask for continued openness from firms on their implementation path. We also chose not to attach a Private Right of Action to the duty. Some parliamentarians and consumer groups wanted us to go further but we believe our reforms strike the right balance," he added.
The FCA boss said that the watchdog has set measurable targets such as reducing the number of complaints going to the Financial Ombudsman Service.
"As the FOS has made clear, the duty does not have a retrospective effect and will not apply to past actions by firms. Conduct will be judged on the rules and standards that were in place at the time. Another quantifiable target is to see an increase in the levels of trust for financial services in our regular survey evidence," he said.
"We will monitor how the duty is working and look forward to hearing from you, about changes we can make to further simplify our rule book going forward. We want to work closely with you so that the consumer duty can help shape a framework for use of artificial intelligence and other new technologies."
Rathi said that the duty will also allow to move more quickly to facilitate new developments, including AI, across sectors. It will help us manage the entry of Big Tech firms into the UK retail financial service, ensuring a level playing field.
According to him, AI can help solve some of the issues such as spotting the signs of vulnerability, tailoring products to individuals and receiving accurate customer feedback and data.
"The CEO of a Japanese insurance firm recently said that the data they use can predict the weather and foresee natural disasters,and for consumers spot early signs of dementia, a development which I am sure will be of interest to our fellow guest this evening from the Alzheimer’s society. A future insurance policy would pay out on the first sign of dementia as well as use data to encourage customers to change their lifestyle to stave off its onset for several years," Rathi said.
"At a conference hosted by our Dutch colleagues in Amsterdam this year, I heard from a chief technology officer of a major bank who said their firm had piloted an AI tool that could predict with 99 per cent accuracy a customer’s bank balance in a year’s time. When customers were presented with this innovation, they did not want the product integrated into their banking app. From masters of the universe to demi-gods of data, financial and Big Tech firms will wield huge power over the direction of our lives."
He said: "Another principle which we can work on under the framework of the consumer duty is that agency must not be attributed to AI systems or algorithms, as these risks removing accountability away from firms. Safe and responsible adoption of AI will always be underpinned by the quality of data."
He assured that consumer duty has a particular focus on vulnerable consumers and taking reasonable steps to ensure informed decision making.
"We want to see banking hubs and alternative forms of provision accelerated and also for people and small businesses to be supported in moving to digital, where branches close in community. While the consumer duty will help firms and consumers in future navigate the cost-of-living crisis, we remain focussed on what is happening on the ground today including how consumers are being treated," the CEO said.
He further said that the FCA wants to to bring the Financial Service Compensation Scheme down and to reduce cost for small businesses. The scheme provides protection for customers of failed financial services firms.
The scheme is the UK's statutory deposit insurance and investor compensation scheme for authorised financial services firms' customers. The FSCS can compensate a company if it is unable or likely to be unable to pay claims made against it.
While mentioning about the plans to make the UK a global crypto hub, Rathi said that ministers were explicit the way to achieve this was to move fast while applying high standards of protection, citing our work around Anti-money laundering (AML) registrations, sanctions and the push for greater powers over financial promotions.
"We pioneered the regulatory sandbox with UK firms, now copied around the world. We are the first regulator to directly support early and high growth potential firms. Earlier this year we held our first crypto sprints – getting industry, legal experts and academics together to work at pace on how future regulation could and should work. Through our chairmanship of the Global Financial Innovation Network (GFIN), we are about to launch a new sprint enabling firms to trial and scale new tech across multiple jurisdictions, focussing on ESG, supporting global market access.
"Together, we will make sure the UK is the best place in the world to do financial services business."
Sitting at the centre of a long table, Trump was flanked by First Lady Melania Trump and Microsoft co-founder Bill Gates on one side, and Meta CEO Mark Zuckerberg on the other. (Photo: Getty Images)
US PRESIDENT Donald Trump praised Microsoft CEO Satya Nadella and Google CEO Sundar Pichai during a White House dinner with top technology executives on Thursday. The two Indian-American leaders thanked him for his leadership and for policies in the technology and AI sectors.
Trump described the gathering as a “high IQ group,” calling the executives “the most brilliant people.” Sitting at the centre of a long table, Trump was flanked by First Lady Melania Trump and Microsoft co-founder Bill Gates on one side, and Meta CEO Mark Zuckerberg on the other. Pichai and Apple CEO Tim Cook sat across from him, while Nadella was seated toward one end of the table.
“It’s an honour to be here with this group of people. They’re leading a revolution in business and in genius and in every other work you can imagine,” Trump said.
After his remarks, Trump invited the technology leaders to share their thoughts.
Pichai said the “AI moment is one of the most transformative moments any of us have ever seen or will see in our lifetimes. So making sure the US is at the forefront.” He called the White House’s “AI Action Plan,” announced in July, a “great start.”
“We look forward to working together. And thanks for your leadership,” Pichai told Trump. “Great job you’re doing. Incredible, really,” Trump replied.
Turning to Nadella, Trump said the Microsoft chief “has done a pretty good job” and pointed to Microsoft stock rising from USD 28 to over USD 500. “What a job you’ve done,” Trump said.
Nadella thanked Trump “for bringing us all together” and for policies that support US leadership in technology. He added that market access and global trust in American technology were key.
“I think that everything that you are doing in terms of setting in place the platform where the rest of the world can not only use our technology, but trust our technology more than any other alternative, is perhaps the most important issue, and you and your policies are really helping a lot,” Nadella said.
Nadella also thanked the First Lady for hosting a discussion on AI and economic opportunity. Trump responded: “A really amazing job you’ve done.”
Earlier in the day, Melania Trump hosted a meeting of the White House Task Force on Artificial Intelligence Education, joined by Pichai, IBM CEO Arvind Krishna and other industry leaders.
Speaking after Nadella, Gates said he is now in the second phase of his career, “giving away all the wonderful money that Satya’s good work has helped multiply a lot,” drawing laughter from Trump.
During the dinner, Trump asked Pichai about Google’s investment plans. Pichai said the company would invest USD 250 billion in the US over the next two years. “It’s great. We are proud of you. A lot of jobs,” Trump responded.
Trump also asked Nadella about Microsoft’s investment. Nadella said the company invests about USD 75–80 billion each year in the US. “Very good, thank you very much,” Trump said.
Responding to media questions at the event, Trump repeated his claim that he had “settled” seven wars, without naming them. He added that three of those wars had lasted 31, 34 and 37 years. Trump also said he would soon speak with Russian President Vladimir Putin, adding, “We are having a very good dialogue.”
Other attendees included Google co-founder Sergey Brin, OpenAI CEO Sam Altman and Oracle CEO Safra Catz.
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Britain's prime minister Keir Starmer (R) and India's prime minister Narendra Modi (L) speak as they walk in the gardens of Chequers, in Aylesbury, England, on July 24, 2025. (Photo by KIN CHEUNG/POOL/AFP via Getty Images)
PRIME MINISTER Keir Starmer is expected to make his first visit to India in early October, with technology and trade ties at the centre of his programme. He is scheduled to join Indian prime minister Narendra Modi at the Global Fintech Fest (GFF) 2025 in Mumbai, officials indicated on Tuesday (9).
The event, which runs from October 7 to 9 at the Jio World Centre, is organised by the Payments Council of India, the National Payments Corporation of India and the Fintech Convergence Council. It is promoted as the world’s largest conference in the sector and is supported by several Indian ministries and regulators, including the Reserve Bank of India and the Securities and Exchange Board of India.
Mumbai will be the main focus of Starmer’s trip, which comes a little over two months after Modi visited Britain to conclude the bilateral free trade agreement. The agreement, formally known as the Comprehensive Economic and Trade Agreement (CETA), is now undergoing ratification in the UK Parliament. It sets a target of doubling bilateral trade to $120 billion (£89bn) by 2030.
Starmer’s visit may also include engagements in Bengaluru, reflecting the city’s role as a hub for India’s technology industry. The trip will follow shortly after the Labour party’s annual conference in Liverpool.
Officials in London and New Delhi have said the two leaders will use the opportunity to review progress across the wider India-UK Comprehensive Strategic Partnership. Areas of focus include defence, security, education and innovation, in addition to trade.
Keir Starmer (R) and Narendra Modi have a cup of tea during a business showcase event at Chequers, in Aylesbury, England, on July 24, 2025. (Photo by KIN CHEUNG/POOL/AFP via Getty Images)
Technology cooperation has gained particular importance in recent years. The India-UK Tech Security Initiative, launched last year, aims to strengthen joint work in emerging areas such as artificial intelligence, quantum computing, biotechnology, critical minerals and secure telecoms.
Speaking ahead of the event, Infosys co-founder Kris Gopalakrishnan, chair of the GFF 2025 advisory council, said the conference would explore how financial technology can be used to expand access and improve efficiency.
“The UK and India share one of the most dynamic economic relationships in the world. Financial services and technology are central to this association, with significant opportunities for a synergy between London’s global role in fintech and India’s digital public infrastructure and consumer base,” he said.
The theme for this year’s fest looks beyond artificial intelligence to what organisers call “augmented intelligence,” which combines human expertise with digital tools. According to the organisers, discussions will address how to create solutions that are responsible, inclusive and sustainable.
Policymakers, regulators, investors and academics are expected to attend, making the event a key platform for dialogue between the two countries. For Starmer, it will also provide an early chance to present his government’s vision for closer engagement with India, building on long-standing cultural and economic links.
Starmer accepted Modi’s invitation to visit during their talks at Chequers in July. At that meeting, both leaders underlined the importance of the relationship and expressed confidence that cooperation would expand further in the years ahead.
(PTI)
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Demonstrators gather in support of Khalistan during a Sikh rally outside the Consulate General of India, in Toronto, Ontario, Canada, on September 25, 2023.
AT LEAST two Khalistani extremist groups have received financial support from within Canada, according to a new Canadian government report on terror financing.
The report, titled 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada, named Babbar Khalsa International and the International Sikh Youth Federation as the groups receiving such support.
This comes two months after a report by Ottawa’s intelligence agency said politically motivated violent extremism in Canada since the mid-1980s has taken shape through Khalistani extremists seeking to use violence to create an independent nation state called Khalistan in India’s Punjab.
The new report defined Politically Motivated Violent Extremism (PMVE) as encouraging “the use of violence to establish new political systems, or new structures and norms within existing systems.”
“While PMVE may include religious elements, actors are more focused on political self-determination or representation, rather than racial or ethnic supremacy,” it added.
The report noted that several terrorist entities listed under Canada’s Criminal Code fall under the PMVE category, including Hamas, Hezbollah, Babbar Khalsa International, and the International Sikh Youth Federation. Law enforcement and intelligence agencies have observed these groups receiving financial support originating from Canada, it said.
In 2022, the Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC) Operational Alert on Terrorist Activity Financing identified Hezbollah as the second most frequently noted international terrorist group receiving Canadian funds.
The 2025 Assessment also outlined PMVE financing methods. It said Hamas and Hezbollah are well-resourced groups that use a variety of methods, including abuse of money services businesses and banking sectors, use of cryptocurrencies, state financing, exploitation of charitable and non-profit organisations (NPOs), and criminal activity.
“Khalistani extremist groups supporting violent means to establish an independent state within Punjab, India, are suspected of raising funds in a number of countries, including Canada. These groups previously had an extensive fundraising network in Canada but now appear to consist of smaller pockets of individuals with allegiance to the cause but seemingly no particular affiliation to a specific group,” the report said.
The report highlighted misuse of non-profit and charitable activities as a concern.
“The misuse of the charitable and NPO sectors has been observed as a prominent financing method used by Hamas and Hezbollah. Khalistani violent extremist groups have also been known to use networks to solicit donations from diaspora communities to raise and move funds, including through NPOs,” it said.
It clarified that revenue from NPO abuse represents a relatively small share of terrorist groups’ operational budgets overall.
The report added that drug trafficking is the largest money laundering threat in Canada, followed by fraud, commercial trade fraud, trade-based money laundering, and tax crimes.
“These threats are each estimated to involve billions of dollars in illicit proceeds annually in Canada,” it said.
The report follows the Canadian Security Intelligence Service’s 2024 assessment, released on June 18, which stated that ongoing involvement in violent activities by Canada-based Khalistani extremists continues to pose a national security threat.
“Since the mid-1980s, the PMVE threat in Canada has manifested primarily through Canada-based Khalistani extremists seeking to use and support violent means to create an independent nation state called Khalistan, largely within Punjab, India,” the CSIS report said.
That report aligned with New Delhi’s position that pro-Khalistani groups in Canada have been carrying out anti-India activities with impunity.
(With inputs from agencies)
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Education secretary Bridget Phillipson leaves following a cabinet meeting at Downing Street on September 9, 2025.
EDUCATION SECRETARY Bridget Phillipson has announced her candidacy for Labour’s deputy leader, becoming the most senior figure to enter the contest so far.
Clapham and Brixton Hill MP Bell Ribeiro-Addy is the only other declared candidate in the race to replace Angela Rayner.
Lucy Powell, who was removed as leader of the House of Commons last week, is expected to announce her bid.
Foreign affairs committee chair Emily Thornberry has said she is considering running, while former transport secretary Louise Haigh and Tooting MP Rosena Allin-Khan have ruled themselves out.
Candidates must secure nominations from at least 80 Labour MPs by Thursday evening. They also need support from either 5 per cent of local parties or three Labour-affiliated groups, including two unions. Those who qualify will face a ballot of party members, with the winner to be announced on 25 October.
Some Labour members have criticised the short nomination period. Ribeiro-Addy said: "It is absolutely unfair, and I don't think it's what the membership want." She told BBC Radio 4’s Today programme the party needed to reflect on "what's gone wrong," citing concerns over Gaza, winter fuel allowances and welfare cuts.
Announcing her candidacy, Phillipson said: "Because make no mistake: We are in a fight. We all know the dangers Reform poses our country."
Health secretary Wes Streeting said he had not yet decided whom to support. David Lammy will remain deputy prime minister regardless of the outcome.
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Passengers walk back to the reopened terminal after emergency services responded to what they called a 'possible hazardous materials incident' at Terminal 4 of Heathrow Airport.
HEATHROW Airport has reopened Terminal 4 after it was evacuated on Monday evening following what authorities described as a "possible hazardous materials incident."
The airport said the terminal was declared safe and apologised for the disruption. In a post on X, Heathrow said it was "doing everything we can" to make sure flights depart as planned.
The London Fire Brigade confirmed it had stood down its response.
Terminal 4, which handles both European and long-haul flights, was closed temporarily as specialist fire crews carried out an assessment.
The London Ambulance Service said paramedics treated 21 patients and one person was taken to hospital. The nature of the incident has not been disclosed.
The Metropolitan Police said specialist officers were at the scene and conducted a search of the area. The force said no trace of any "adverse substance" was found.
Video clips shared online, which could not be verified, showed passengers waiting outside the terminal. Heathrow’s departures board showed flights continuing to take off.
In March, Heathrow was shut for nearly a day after a fire at a nearby electrical substation cut power, disrupting flights worldwide and leaving thousands of passengers stranded.