The FCA has published final rules for the Consumer Duty along with key timescales.
The regulator has also provided practical guidance to help firms meet the rules.
As a priority, your firm needs to start drafting its implementation plan to meet the Consumer Duty rules now. Your firm must also be able to evidence it has scrutinised and challenged the plan to ensure it is deliverable and robust.
This task needs to be completed by the end of October 2022.
The Consumer Duty is a very significant piece of regulation that sets higher expectations for the standard of care firms across the financial services industry give to consumers in retail financial markets.
It aims to ensure that existing best practice around good outcomes for consumers is applied consistently across the industry.
In the advice sector, good client outcomes are already wired into day-to-day operations.
Your firm should already be delivering on the majority of what the Consumer Duty aims to achieve because of existing regulatory alignment and having the processes in place to help deliver good outcomes and fair value for clients. But there are likely to be additional steps you need to take.
The Consumer Duty outlines four key outcomes that set out, in some detail, the FCA’s expectations of firms in relation to:
1. Products and services
2. Price and value
3. Consumer understanding
4. Consumer support
Each of these are key elements of a firm’s relationship with consumers, and are key in driving good outcomes.
To help you meet the regulator’s imminent deadlines, we’ve created practical guidance and support material so your firm can get ready:
Take a look at our insight which offers further support and help to understand your firm’s obligations under the Consumer Duty.
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