Context
Alongside the Consumer Duty Board Reports findings, the second of two Consumer Duty-themed reports sets out good practice and areas for improvement in relation to complaints and root cause analysis. The FCA has set out the results of a targeted and thematic review that it carried out, based on a review of practices in 40 firms across a range of sectors. The insights have been informed by data provided by firms through an information request issued in January 2024 together with a range of other data sources.
Key points to note and next actions
For firms sampled, the FCA identified a key area of good practice and three key areas for improvement:
Good practice:
- Good management information and clear governance structures.
Areas for improvement:
- Analysing data for different customer types.
- Taking action based on these insights.
- Assessing and measuring the impact of these actions.
The report sets out findings across a breadth of topics, including complaints data and MI, the use of internal data against all Consumer Duty outcomes, actions focus, measuring impact, cross-firm action, evaluation, governance and challenge, collaboration within the firm, taking action on insight, policies and procedures, and training. This range of headings in itself might indicate what the FCA sees as key elements of overall complaints handling and root cause analysis practice.