| Link(s): | FCA Board Minutes: 27 April 2023 |
Context
At its 27th April meeting the FCA Board discussed the proposed approach to supervising and enforcing the new Consumer Duty from 31st July 2023 and how this would be communicated externally. During the course of discussion, the Board raised a number of key points and steers.
Key points to note
- There is a need for clarity across two dimensions of regulation in the run up to the July implementation date:
- the supervision of firms who are required to embed the duty, and
- tackling actual to harm or risks of harm in breach of the duty.
The Board was cognisant of the need to monitor the FCA’s shift to outcomes-based regulation
- The Board reflected on the significance of this work for the FCA and noted the need to ensure that internal coordination supports the organisation in communicating the regulatory approach effectively and consistently.
- The implementation of the Duty should be measurable by firms, operable by the FCA and meaningful and understandable for consumers.
- While Board members recognised that the Financial Ombudsman Service is an independent body, they noted that it would be helpful to continue to engage FOS on the FCA’s direction of travel and communications strategy.
In light of the conversation, the Board requested that the FCA explains clearly to external stakeholders its “early days” approach to implementation of the NCD by firms as well as ensuring clarity on its approach to more serious consumer harms under the Duty.
Next actions
None – for information and awareness.