Why the FCA (Financial Conduct Authority) Is Driving Demand for Clearer Customer Communication
Why the FCA (Financial Conduct Authority) Is Driving Demand for Clearer Customer Communication
Why the FCA (Financial Conduct Authority) Is Driving Demand for Clearer Customer Communication

21 Jul 2025

Why the FCA (Financial Conduct Authority) Is Driving Demand for Clearer Customer Communication

Learn how the FCA’s Consumer Duty is reshaping financial customer communication, demanding clarity and fair outcomes for retail clients.

Simon Jones
Simon Jones

Simon Jones

CEO & Founder

21 Jul 2025

Why the FCA (Financial Conduct Authority) Is Driving Demand for Clearer Customer Communication

Learn how the FCA’s Consumer Duty is reshaping financial customer communication, demanding clarity and fair outcomes for retail clients.

Simon Jones

Simon Jones

CEO & Founder

For years, many financial firms treated customer communication as a box-ticking exercise in compliance. As long as disclaimers were included and the information was technically accurate, true clarity was often a secondary concern. That era is definitively over.

Today, the Financial Conduct Authority (FCA) is no longer just a regulator of conduct. It has become a primary driver for clearer, fairer, and more effective customer communication across the financial services sector. Recent initiatives, most notably the Consumer Duty, have fundamentally shifted the landscape.

“Clarity” is no longer a nice-to-have. It’s now a measurable part of every firm’s obligation to deliver good customer outcomes.

For marketing, product, and compliance teams, understanding this shift is essential. Here’s why the FCA is so focused on clear customer communication and what it means for how you engage your clients.

The Consumer Duty: Raising the Standard for Clarity

The FCA’s Consumer Duty has established a higher standard of consumer protection. Firms must now act to deliver good outcomes for retail customers. While this may sound simple, the implications for communication are profound.

A key aspect of the Duty is the responsibility to avoid causing foreseeable harm. Complex, jargon-heavy, or misleading communications are now under the regulatory spotlight as potential sources of harm. If a customer makes a poor decision because they couldn’t fully understand your material, your firm can be held accountable.

This shift means that every piece of communication, from a website user journey to an explainer video, must be designed for maximum understanding and fairness.

Read the FCA’s full Consumer Duty policy for detailed guidance.

From Passive Information to Active Support

Under Consumer Duty, firms must do more than just present information accurately. They must enable and support customers to pursue their financial goals. Communication can no longer be passive. It must actively help people make informed decisions.

This practical demand for clarity poses real design challenges. How do you explain a complex investment product or pension fee structure in a way that genuinely empowers the user? The Financial Conduct Authority expects firms to bridge this gap and it’s driving a shift away from dense documents and towards clearer formats like videos, infographics, and simplified digital journeys.

Why This Matters for Explainer Video Production

Clear communication is no longer just good practice – it’s a compliance requirement. Many firms are turning to explainer video services to distill complicated financial products into accessible, digestible content that aligns with the FCA’s standards.

A well-crafted financial explainer video ensures that key details are presented fairly, clearly, and without ambiguity – protecting both your clients and your business from compliance risks.

If you’re responsible for financial services compliance, working with a specialist video partner who understands the FCA’s expectations can make the difference between simply ticking a box and genuinely supporting your customers.

Action Steps for Marketing and Compliance Teams

  • Review all customer-facing communication through the lens of the Consumer Duty. Is it fair, clear, and not misleading?

  • Replace jargon and dense paragraphs with simple, plain-language explanations.

  • Use structured visuals, data visualisation, and animation to reinforce clarity.

  • Partner with a production team that specialises in regulated industries, so compliance is built in from the start.

Final Thoughts: Clarity Builds Trust

Clear communication is now a measurable, enforceable part of your compliance strategy –not just a creative choice. Firms that embrace this shift not only avoid regulatory risk but also strengthen customer trust and brand reputation.

At Animara Studios, we specialise in explainer videos for regulated industries like finance, legal, and insurance. Our approach combines storytelling with compliance-first thinking — ensuring your message is compelling, accurate, and aligned with FCA expectations.

Book a Free Discovery Call to learn how we can help you meet the new standards for clear, fair customer communication.

Let’s keep in touch.

Discover more about high-performance
animation, web design & development.