FCA UK Regulation Exam Practice 2025 – Complete Preparation Guide

Question: 1 / 400

What does the FCA expect from firms regarding customer communications?

Use complex jargon

Provide misleading information

Be clear and not misleading

The expectation from the FCA is that firms must ensure that their customer communications are clear and not misleading. This is essential as it promotes transparency and encourages informed decision-making among consumers. Clear communication helps consumers understand the products or services being offered, the associated risks, and any terms and conditions applicable. The FCA's focus on customer protection necessitates that firms adopt plain English in their communications, eliminating jargon or ambiguous language that may confuse customers.

Effective communication fosters trust and confidence in financial services, thereby contributing to a more stable and fair market. Therefore, firms are encouraged to regularly review their communication strategies to ensure they meet these clarity standards, ultimately enhancing consumer outcomes.

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Minimal communication is required

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