The Financial Services Authority ("FSA") has published a guidance consultation which sets out the FSA’s expectations of non-executive directors in delivering the appropriate management of retail conduct risk within firms. By retail conduct risk the FSA means the risk of a firm treating its retail customers unfairly and delivering inappropriate outcomes. The guidance recommends that non-executive directors challenge whether: (i) business proposals are aligned with the firm’s conduct risk strategy and are within its stated conduct risk appetite; (ii) the firm’s culture is such that it delivers good behaviours and outcomes, both prudentially and for customers; (iii) they have the right information to enable them to make robust decisions and if they feel they do not, then they should ask for it; (iv) risks to customers have been identified; (v) appropriate actions are in place to mitigate and monitor such risks; (vi) the board supports the identification and escalation of issues when they go wrong and ensures appropriate resolution; and (vii) the business learns from identified issues and draws out the wider implications.