The Consumer Duty comes into force on 31 July 2023 for new and existing products or services that are open to sale or renewal, and the 31 July 2024 for closed products or services.
With only six months to go before the Consumer Duty comes into force, the Financial Conduct Authority (FCA) published a review on 25 January 2023 of how firms are faring.
Although the FCA found that most companies seem on track they also found that some firms are behind in their planning, with the risk that they may struggle to apply the Duty effectively once the rules come into force.
The FCA says “Through our review we have identified many examples of good practice, and also examples where firms may need to improve their implementation approach. We think all firms will find these examples useful, as they will help them better understand our expectations and recalibrate and improve their embedding work where necessary”.
The FCA is stressing the importance of having a particular focus on:
- Prioritising: Focus on those areas that will make the biggest impact on outcomes for consumers.
- Making the changes needed: Not only planning but also implementing the necessary changes whilst informing customers.
- Working with other firms: Don’t do this in isolation, many firms need to share information with other firms, especially those within their distribution chain where firms should work together to avoid conflicts, gaps and reinventing the wheel and use time more efficiently.
Our past article provides more context and information about Consumer Duty.
How Complyport Can Help?
At Complyport we are supporting many firms with implementing the Duty through:
- Compliance framework review to assess the impact of the Duty across the business.
- Formulating roadmaps to implement this timely and efficiently.
- Assessing the effectiveness and completeness of a roadmap
- Testing and reviewing.
Please contact Jan Hagen for any questions and assistance regarding the Consumer Duty implementation plans via email at jan.hagen@complyport.co.uk to book in a free consultation.
About Complyport
Complyport is a market-leading consulting firm supporting the UK financial services industry for over 20 years. We specialise in providing Governance, Risk and Compliance services to support the regulated financial services industry to raise standards and thrive.
Complyport can assist with the preparation of a GAP analysis and impact assessment on the investment firm’s capital adequacy and risk management framework of the Company under the regulatory framework.
We specialise in supporting the UK financial services industry with compliance guidance, advice and best practice.
- Financial Promotions guidance, support, and management software solutions
- Prudential support, IFPR, ICARA and financial resilience advice
- Operational resilience & Cybersecurity advice
- CASS advice and protections of client assets
- Comprehensive compliance work-flow management software
- Compliance managed services and resourcing compliance personnel
- Financial Crime and Forensics
- Consumer Duty implementation advice
- Skilled Person Reviews and Regulatory Investigation
Contact our Head of Regulatory Business Solutions, Jan Hagen via email at: jan.hagen@complyport.co.uk to book a free consultation.
