Observations from the FCA’s webinar: One year on
The Financial Conduct Authority (FCA) live streamed an event on Wednesday 31 July, focusing on the impact of the Consumer Duty in its first year.
The overriding requirement in the Consumer Duty is that firms must act to deliver good outcomes for their customers, including those with characteristics of vulnerability. The Duty defines the standards of conduct that firms must follow to deliver good outcomes for their customers – firms must act in good faith towards customers, avoid causing foreseeable harm and enable and support their customers to pursue their financial objectives.
The firm’s board is responsible for assessing compliance with the Duty. Firms need to monitor and regularly review customer outcomes and act where they identify risks to compliance with the Duty. The rules and guidance identify ‘four outcomes’ which serve as the key measure for gauging whether firms are delivering good outcomes. These are concerned with whether the firm’s:
The Consumer Duty reflects a clear shift in the FCA’s regulatory approach from rules-based compliance to an outcomes-focused approach. The onus is on firms to monitor, assess, understand and evidence how they are acting to deliver good outcomes. Firms need to collect a broad range of data and information to give them the insights they need and produce management information to support compliance with the Duty. This aligns with the FCA’s own transformation to become more data-led, allowing for more timely market interventions.
We have a dedicated team of conduct specialists to help firms to comply with the Consumer Duty. The team has extensive experience of helping firms to improve conduct, performing outcome assessments and giving independent assurance to Boards and Senior Managers.
We provide an independent viewpoint, review and make recommendations to build trust and confidence among key stakeholders so that a firm’s approach is geared to delivering good outcomes for customers. We can support in a number of areas including:
If you would like to speak with a member of our Financial Services team, please contact us or to submit Request for Proposal documents, use the link below.
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