The Financial Conduct Authority (FCA) says it will invest £5.3m to "ensure the Consumer Duty is embedded effectively".

The new regulation is front and centre in the regulator's 2023/24 business plan, which details its scheduled work for the next 12 months.

The plan - published today (5 April) - states that Consumer Duty will be an integral part of the FCA's regulatory approach and mindset "at every stage of the regulatory lifecycle" from authorisation and policy development through to supervision and enforcement priorities and processes.

The watchdog said the £5.3m in new funding assigned to the regulation will allow it to undertake "sector-specific supervisory work".

"Through targeted multi-firm work, for example on fair value and sludge practices, we will identify, assertively supervise and effectively enforce against activities which undermine effective competition and good consumer outcomes," it stated. "Our new Consumer Duty will ensure every firm considers the actual impact of their products and services on consumers."

The regulator added it was poised to focus its attention on outcomes consumers experience immediately as the regulation is embedded.

It explained: "Combined with our more data-led approach, this should enable us to more quickly identify practices that negatively affect those outcomes and to intervene assertively before practices become entrenched."

As an example, the FCA said it will focus on whether consumers understand the products they buy, rather than only checking whether firms comply with disclosure rules.

"We will expect to see evidence of this," it added.

The regulator said: "Consumer Duty will give firms greater certainty about how they should treat consumers and greater flexibility on how they deliver good outcomes. It supports future innovation by being clear about the standards required, whatever the product - and we envisage fewer future rule changes as a result, which should lower costs to firms."

Chief executive Nikhil Rathi added: "We've put vital changes in place, meaning we are better set up to face challenges."