The FCA have issued an update on the Consumer Duty and what they expect from firms, below is an overview of the key points and link to the full document.
- Consumer Duty Implementation: The FCA outlines its approach to supervising and enforcing the Consumer Duty, emphasizing the need for firms to deliver good customer outcomes and demonstrate compliance.
- Supervision and Enforcement: The FCA will prioritize the most serious breaches, taking swift and assertive action, including interventions, investigations, and possible disciplinary sanctions.
- Data and Analytics: Firms are encouraged to improve their use of data and analytics to demonstrate compliance, with the FCA being pragmatic and open in working with them.
- Key Areas of Focus: The document addresses various aspects such as annual board reports, board champions, identifying vulnerable customers, closed products, retrospective application, proportionality, and requirements for firms seeking authorization.
- Scope and Application: Clarifications are provided on how the Duty applies to firms throughout the distribution chain, information-sharing, application to non-UK firms and customers, and data protection law.