Financial Advisory × Compliance — United Kingdom · published 2026-05-26 · methodology v2.1

Legal basis of Consumer Duty — FSMA 2023 disclaimer

RLB-F-GB-FCA-CONSUMER-DUTY-PS22-9-Q002

What the RLB Specialist Panel found

1. Legal basis of Consumer Duty — FSMA 2023 disclaimer

Question (paraphrased to protect IP): Was the Consumer Duty created through primary legislation or FCA rulemaking? What is the legal basis for Principle 12 and PRIN 2A, and did FSMA 2023 have any role in creating it?
Source regulation: Consumer Duty (PS22/9 + PRIN 2A), Financial Conduct Authority (Regulator portal: https://www.fca.org.uk)
What AI assistants typically say: AI tools correctly identify FCA rulemaking under FSMA 2000 as the legal basis for the Consumer Duty, and typically reference FCA 2022/31 accurately. However, they omit any reference to FSMA 2023 and fail to address whether that Act had any role — leaving a critical gap in the answer without flagging that the question raised a specific point about FSMA 2023.
What the regulator actually says: FSMA 2023 did not create the Consumer Duty.
Why the AI went wrong: The AI answered the main question competently but ignored a targeted sub-question that required a specific negative statement. Because the AI did not address FSMA 2023 at all, a reader relying on the output would have no guidance on this point and might draw an incorrect inference from the silence.
Cited source(s):
https://www.akingump.com/en/insights/alerts/new-fca-principle-12-consumer-duty — Pretextual

Impact for this audience

A Compliance team drafting an internal briefing or regulatory mapping note on the legal basis of Consumer Duty may circulate a document that does not address the FSMA 2023 position — leaving the firm unable to respond accurately if the FCA or an external auditor raises this point directly. While the practical regulatory risk of this specific omission is lower than some other findings, it undermines the firm's credibility in regulatory dialogue and creates a gap in its documented understanding of the Duty's foundations. The FCA can draw adverse inferences from a firm that demonstrates incomplete command of the legislation underpinning its obligations.

References — raw findings (per AI model)

RLB-H-GB-FCA-CONSUMER-DUTY-PS22-9-Q002-Sonnet46 Claude Sonnet 4.6 (web search on)

This finding also affects

Next finding → Finding 2. Foreseeable harm carve-out — the "reasonably believes" qualifier

Cite this finding

Each finding has a stable Citation ID (RLB-F-… for aggregated case-study findings, RLB-H-… for raw per-model hallucinations) — like a DOI, the ID always resolves to the canonical finding even if URLs change.

Plain text

RegLeg Specialist Panel (2026). "Legal basis of Consumer Duty — FSMA 2023 disclaimer — Financial Advisory × Compliance — United Kingdom." Citation ID: RLB-F-GB-FCA-CONSUMER-DUTY-PS22-9-Q002. RegLegBrief AI Hallucination Research, published 2026-05-26. https://reglegbrief.com/audiences/sectors/gb/financial_advisory/compliance/finding/GB-FCA-GB-001-CONSUMER-DUTY-PS22-9-v1-002/

APA 7th edition

RegLeg Specialist Panel. (2026). Legal basis of Consumer Duty — FSMA 2023 disclaimer [Hallucination finding RLB-F-GB-FCA-CONSUMER-DUTY-PS22-9-Q002]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/audiences/sectors/gb/financial_advisory/compliance/finding/GB-FCA-GB-001-CONSUMER-DUTY-PS22-9-v1-002/

Bluebook / OSCOLA (US + UK legal)

RegLeg Specialist Panel, Legal basis of Consumer Duty — FSMA 2023 disclaimer [RLB-F-GB-FCA-CONSUMER-DUTY-PS22-9-Q002], RegLegBrief AI Hallucination Research (May 26, 2026), https://reglegbrief.com/audiences/sectors/gb/financial_advisory/compliance/finding/GB-FCA-GB-001-CONSUMER-DUTY-PS22-9-v1-002/.

BibTeX

@misc{reglegbrief_RLB_F_GB_FCA_CONSUMER_DUTY_PS22_9_Q002,
  author    = {RegLeg Specialist Panel},
  title     = {Legal basis of Consumer Duty — FSMA 2023 disclaimer},
  year      = {2026},
  publisher = {RegLegBrief AI Hallucination Research},
  note      = {Hallucination finding Citation ID: RLB-F-GB-FCA-CONSUMER-DUTY-PS22-9-Q002},
  url       = {https://reglegbrief.com/audiences/sectors/gb/financial_advisory/compliance/finding/GB-FCA-GB-001-CONSUMER-DUTY-PS22-9-v1-002/}
}

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