Financial Services and Markets Act 2000, section 1C

The consumer protection objective

PART 1A The Regulators

(1)The consumer protection objective is: securing an appropriate degree of protection for consumers.

(2)In considering what degree of protection for consumers may be appropriate, the FCA must have regard to—

(a)the differing degrees of risk involved in different kinds of investment or other transaction;

(b)the differing degrees of experience and expertise that different consumers may have;

(c)the needs that consumers may have for the timely provision of information and advice that is accurate and fit for purpose;

(d)the general principle that consumers should take responsibility for their decisions;

(e)the general principle that those providing regulated financial services should be expected to provide consumers with a level of care that is appropriate having regard to the degree of risk involved in relation to the investment or other transaction and the capabilities of the consumers in question;

(f)the differing expectations that consumers may have in relation to different kinds of investment or other transaction;

F15 (g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h)any information which the scheme operator of the ombudsman scheme has provided to the FCA pursuant to section 232A.

Read section 1C in the full Act → Definitions (4) Cases (15)

Definitions used in section 1C

the FCA

(2) The Financial Conduct Authority is in this Act referred to as “the FCA”.

Defined in s.1A(2) · see it in the full Act

“the FCA” means the Financial Conduct Authority;

Defined in s.417(1) · see it in the full Act
Investment

(4) “Investment” includes any asset, right or interest (including where an asset, right or interest is, or comprises or represents, a cryptoasset) .

Defined in s.22(4) · see it in the full Act
the scheme operator

“the scheme operator” has the meaning given in section 225(2);

Defined in s.417(1) · see it in the full Act
the ombudsman scheme

(3) The scheme is to be operated under a name chosen by the scheme operator but is referred to in this Act as “the ombudsman scheme”.

Defined in s.225(3) · see it in the full Act

“the ombudsman scheme” has the meaning given in section 225(3);

Defined in s.417(1) · see it in the full Act

Cases considering section 1C (15)

Hopcraft and another v Close Brothers Limited; Johnson v FirstRand Bank Limited (London Branch) t/a MotoNovo Finance; Wrench v FirstRand Bank Limited (London Branch) t/a MotoNovo Finance

[2025] UKSC 33 · 1 August 2025Interprets

The FCA’s consumer-protection objective requires a nuanced degree of protection, taking account of transactional risks, consumer capabilities, information needs and consumer responsibility. This context did not equate regulated dealers with fiduciaries. (see paras [254]; [264]-[266])

The All-Party Parliamentary Group on Fair Banking Group, R (on the application of) v The Financial Conduct Authority

[2025] EWHC 525 (Admin) · 7 March 2025Interprets

The consumer protection objective was treated as securing an appropriate degree of protection for consumers and as informing the FCA’s assessment of differential intervention. (see paras [7], [143]) The FCA was entitled, and required, to have regard to differing consumer experience and expertise and consumer responsibility when deciding the appropriate degree of protection. (see paras [8], [68], [143]-[147])

Bluecrest Capital Management (UK) LLP v The Financial Conduct Authority

[2023] UKUT 140 (TCC) · 21 June 2023Limits

Confirms that consumer protection means securing an appropriate degree of protection, but does not itself authorise redress without the statutory conditions governing a single-firm scheme. (see paras [254]-[257]; [283]-[318]) Cited as identifying matters relevant to the appropriate degree of consumer protection, subject to the statutory limits on redress powers. (see para [254])

What each judgment says about section 1C is in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Amendments

  1. F15S. 1C(2)(g) omitted (6.4.2021) by virtue of Financial Guidance and Claims Act 2018 (c. 10), s. 37(5), Sch. 3 para. 8; S.I. 2021/433, reg. 2(b)(i)