Recently we have been approached by several clients seeking clarity on UK Consumer Duty. We have created the following article to illustrate what the regulation is and how we can help support our clients in meeting it.
What is UK Consumer Duty?
The FCA’s new UK Consumer Duty will require firms to deliver higher standards of customer care, protection and communication. The regulation is so significant that even the FCA has said it will lead to a “major shift” in financial services.
Consumer Duty comprises of three measures:
1. Consumer Principle 12
Requiring firms “to act to deliver good outcomes for retail customers.”
2. Cross-cutting Rules
A firm must:
3. Four Outcomes
A suite of rules and guidance setting more detailed expectations for a firm’s conduct according to the four specific outcomes that represent the key elements of the firm and its consumer relationships:
When do you need to be ready?
Boards (or equivalent management body) have until 31st October to agree implementation plans. Firms with open products and services must action their plans by the end of July 2023. Those with closed books have until July 2024.
Who is affected?
The rules impact all firms which distribute or manufacture products and/or services to retail customers.
How can we help?
The rules now need to be met within a short timeframe and we are here to support you as you plan and implement your response to the new Consumer Duty.
Download our guide below to find out more.
For more information on how we can help you with the Consumer Duty, industry data and reliable, actionable insights, please get in touch with Mick Hrabe, Toby Finden-Crofts or Richard Ley. You can also call us on 0207 104 2235.