Context
The FCAs Sheldon Mills, Executive Director, Consumers and Competition, delivered a speech at the ‘Countdown to Implementation of the Consumer Duty’ event, focusing on how the FCA believe firms will innovate through the Consumer Duty, which puts customers at the heart of any planning for financial services and products.
Key points to note
Mills warns that a small number of firms may have seen the task as too big and adopted an avoidance tactic in the hope that the Consumer Duty will go away. He notes that the Duty will not go away and there is still time to deliver, although firms that have been avoiding implementation must act now.
The speech covers innovation and the expected benefits of the Duty; breaking down what firms can do in the remaining 5 months before the Duty comes into force; what the next steps towards the Duty are and what it will look like by the time the deadline arrives on 31st July 2023.
Over the next 5 months, it will be essential for firms to work together across the manufacturing and distribution chain to deliver good outcomes, including where the delivery of services may have been outsourced to other parties.
One milestone to look out for is the end of April, which is when manufacturers will need to complete all reviews necessary to meet the 4 outcome rules (governance of products and services; price and value; consumer understanding; and consumer support) and share information with distributors to help them meet their obligations.
Next actions
None – for information and awareness.