31st July is the date that additional regulation comes into force from the Financial Conduct Authority. Since the launch webinar two years ago, we have watched the progress of the new initiative closely, spending hours and hours assessing every facet of our business to ensure we do comply and more importantly, can evidence our compliance. Here’s what the FCA say:
We are introducing rules comprising
- A new Consumer Principle that requires firms to act to deliver good outcomes for retail customers.
- Cross-cutting rules providing greater clarity on our expectations under the new Principle and helping firms interpret the four outcomes (see across).
- Rules relating to the four outcomes we want to see under the Consumer Duty. These represent key elements of the firm-consumer relationship which are instrumental in helping to drive good outcomes for customers.
These outcomes relate to:
- products and services
- price and value
- consumer understanding
- consumer support
Our rules require firms to consider the needs, characteristics and objectives of their customers – including those with characteristics of vulnerability – and how they behave, at every stage of the customer journey. As well as acting to deliver good customer outcomes, firms will need to understand and evidence whether those outcomes are being met.
I don’t particularly expect you to fully understand all of the above, after all the FCA are well known for their “corporate speak”. I just wanted you all to know the dull (but very essential Mr. FCA) world that our team lives in behind the scenes. I’m sure clients take for granted that they are dealing with an honest, reputable, caring firm when they entrust their life savings with us, but the way we conduct ourselves is far from the norm within the greater financial services community.
Continue reading “The Consumer Duty”