Consumer Duty: The Next Steps
Nov
Consumer Duty Speech
Nisha Arora, Director of Cross Cutting Policy and Strategy at the FCA delivered a speech last week at the Deloitte: Consumer Duty – Next Steps event. It’s been 3 months since the Consumer Duty came into force and the FCA are keen to emphasise that this is still one of their key focus areas. There have been some good practices put into place by firms across the UK since that date. For example: –
- Firms simplifying language in the letters they send to customers and introducing more accessible formats to improve outcomes for vulnerable customers.
- Firms being more upfront on their websites about exclusions so it’s easier for customers to understand whether a product meets their needs.
- Firms reviewing their fees with fair value in mind.
Why is the Consumer Duty Important?
The benefits to consumers from the good practices implemented can already be observed through the FCA’s assessment models. However, it is important not to let the momentum gained so far stall. The Duty has been designed to deliver higher levels of protection for financial retail customers. The increased security alongside clearer standards will benefit both consumers and regulated firms.
Where retail market products and services are concerned, it is important that consumers can trust what is on offer. The products and services that come under the scope of the Duty must deliver good outcomes. The new rules and guidance also set the standard of behaviour expected of firms.
