Economic Secretary to the Treasury, Andrew Griffith, has criticised the Financial Conduct Authority (FCA) for its planned Consumer Duty measures.

Griffith, the City Minister responsible for financial services, has suggested the regulator’s plans could damage the sector and spark a wave of “opportunistic” claims from customers saying they have been mistreated.

As reported by the Financial Times, Griffith was “scathing” about the Consumer Duty at a recent closed-door dinner with senior figures from the financial services sector.

According to this report, Griffith is said by colleagues to be worried the duty will introduce new regulatory burdens for financial services firms, at a time when the Treasury plans to relax financial rules as part of a “Brexit opportunity”.

The FCA has stated that its duty will set higher and clearer standards of consumer protection across financial services, and will require firms to put their customers’ needs first.

Despite the criticism from Griffith, the regulator has also recently reiterated its plans to implement the rules of the duty at the end of July.

Executive director, consumers and competition, Sheldon Mills, delivered a speech last week at a “Countdown to Implementation of the Consumer Duty” event hosted by Deloitte LLP, in which he told the industry that being more upfront about what customers can expect from firms should mean “fewer complaints”, as well as “fewer reactive rules down the line”.

“On behalf of your industry peers who have made the effort, we can confirm that the Consumer Duty will not go away,” Mills said.

“Their hard work has not been wasted. And you still have time to deliver. But you must act now. The deadline of 31 July will not be moved.”

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