Identity Verification and Consumer Duty

The FCA's Consumer Duty places new obligations on financial firms to deliver good outcomes for retail customers. Identity verification plays a key role in meeting these requirements by ensuring customers are who they claim to be while providing accessible and fair processes.

Consumer Duty Requirements

The Consumer Duty requires firms to act in good faith, avoid foreseeable harm, support customers in pursuing their objectives, and consider vulnerable customers. Supporting customers in these areas is crucial for compliance.

Verification Implications

For identity verification, this means accessible verification processes, clear communication, support for vulnerable customers, and fair treatment throughout onboarding. Firms should also consider best practices to enhance their verification processes.

Best Practices

Firms should offer multiple verification options, provide clear instructions, ensure processes are accessible, and monitor customer outcomes.

Conclusion

Consumer Duty requirements have implications for how firms approach identity verification. By focusing on customer outcomes and accessibility, firms can meet their regulatory obligations while providing good customer experiences.