FCA finds “some firms are further behind” in Consumer Duty planning

This follows a review conducted by the regulator on how firms are planning to implement the duty. The review, as the industry hits the six months to go mark until it comes into force, took a sample of implementation plans and found many firms show they “understand and embrace” the shift to delivering good customer outcomes and have established programmes of work to comply properly.  

However, the FCA also found some firms are further behind in their planning – so there’s a risk they may struggle to apply the duty effectively once the rules come into force.  

Responding to this, the regulator’s executive director of consumers and competition Sheldon Mills said: “The Consumer Duty will bring about a step change in the way financial services firms treat their customers and we welcome the work firms are doing to implement it.  

“Given the scale of the reform, we recognise that some firms need to make significant changes. For firms which are further behind in making the necessary changes, there is time to put that right and for them to show they are acting in the spirit of the new duty.   

“Firms will also see the benefits of the duty, with increased trust in the sector, more flexibility to innovate and in time fewer rule changes.”   

Off the back of this, the FCA has said in the last six months until the duty comes in to force it wants companies to ensure they’re prioritising things effectively, with a focus on the areas that’ll make the biggest impact on outcomes for consumers.  

It has also urged firms to ensure they’re making the changes needed so consumers receive communications they can understand, products and services that meet their needs and offer fair value, and they get the customer support they need, when they need it.  

Finally, it’s asked for businesses to share information and work closely with their commercial partners to make sure they’re all delivering good customer outcomes as the regulator has found some need to accelerate this work to implement the duty on time.