New Consumer Duty Rules- Update.
Thank you to everyone who responded to last weeks email regarding the new consumer duty rules. It is worth pointing out again that whilst the FCA have given IFAs until the end of July 2023 to implement these new rules, they expect Boards (or equivalent management body) to have scrutinised and signed off on the firms’ implementation plans by the end of October 2022.
For anyone not yet familiar with the requirements, the Duty will include requirements for firms to:
- end “Rip-off” charges and fees
- make it as easy to switch or cancel products as it was to take them out in the first place
- provide helpful and accessible customer support, not making people wait so long for an answer that they give up
- provide timely and clear information that people can understand about products and services so consumers can make good financial decisions, rather than burying key information in lengthy terms and conditions that few have the time to read
- provide products and services that are right for their customers
- focus on the real and diverse needs of their customers, including those in vulnerable circumstances, at every stage and in each interaction.
The implication of the new rules mean that the onus will be placed on firms to conduct research and assess the evidence of what clients need. This implies much greater emphasis on data collection, management, and presentation for interrogation by the regulator.
Even if you feel that your business is already on a good footing for the above, you can expect to be challenged by the FCA as to what measures you have put in place to ensure compliance with the new rules.
As a first stage to assist IFAs, we have devised a framework which can assist you with implementation and is available for a fixed fee. If you require help with the implementation, we can provide that as well.
We are offering an initial free 15-minute consultation for those that would like to discuss this framework, please contact me directly by email if this is of interest to you