REGULATION · UK
FCA publishes fair value guidance three years into Consumer Duty; AI decision-making under scrutiny
FCA released practical guidance on 'fair value' outcomes after three years of Consumer Duty enforcement. Guidance clarifies expectations for product recommendations and pricing; AI-driven advisory systems must demonstrate fair customer outcomes or face enforcement.
WHY IT MATTERS
AI used in robo-advisory, pricing, and credit decisioning must now meet documented fairness standards. Firms without explainable AI models or outcome audits risk FCA enforcement; regulatory bar for 'fairness' keeps rising.