Application to existing products and services

The Consumer Duty will apply in full to any products or services sold or renewed after it comes into effect. Firms are expected to review existing products or services for compliance with all aspects of the Consumer Duty before the end of the implementation period. If firms need to update customer terms and conditions, it will need to do so before it sells the product or service to new customers.

Following the implementation period, firms will also need to comply with relevant Consumer Duty rules, on a forward looking basis, to closed products or services that are not being sold or renewed. The rules that apply to closed products includes:

• a stream-lined product approval process for manufacturers, e.g. manufacturers will need to carry out a regular review of whether any aspect of the product results in the firm not complying with the cross-cutting obligations and taking action appropriate action to mitigate the situation and prevent any further harm;
• an obligation on manufacturers to ensure that a product provides fair value and where a manufacturer identifies that the product no longer provides fair value, it must take appropriate action to mitigate, and where appropriate, remediate any harm caused to existing retail customers. However, such action does not require a firm to waive its vested contractual rights, e.g. in relation to payments already due under the contract, remuneration for services wholly or partly provided, or contractual early repayment charges.