| Link(s): | FCA Board Minutes: 23 June 2022 |
Context
The FCA has published 23rd June 2022 Bard Meeting minutes. The minutes contain a section in relation to The Consumer Duty, which gives a snapshot insight into the FCA’s approach to the implementation and monitoring of the new Duty.
Key points to note
In response to the Board’s emphasis on the importance of the FCA’s Authorisations department’s role in ensuring firms approved at the gateway meet the required standards, the FCA assured the Board that:
- the NCD team and Authorisations had been planning the application of the duty in practice;
- further general training would be rolled out over the summer, with portfolio specific training to follow as portfolio strategies were developed;
- materials had been provided to the Supervision Hub to ensure readiness for any queries on day one and feedback would be given to Authorisations to improve quality and consistency of decision making quickly.
In relation to the FCA’s communications plan and the need to inform consumers as to what this Duty would deliver and when:
- the FCA will tailor its approach so that the proposed timeframe for implementation supports the need for firms to respond urgently to the cost-of-living challenges consumers face;
- communications tailored to smaller flexible firms and small and medium enterprises would be published to give additional support.
In relation to the FCA’s work going forward:
- the Duty will apply on a forward-looking basis to existing products and closed book products;
- the Fair Value rules will apply to these products and, if a firm identified any that were poor value, the FCA will consider taking action to mitigate any harm;
- the Board agreed with the implementation timeframe, reflecting on the need for balance between delivering effectively and delivering at pace;
- once implemented, the FCA is encouraged to take swift action where firms were not meeting standards; feedback is already being given to firms where gaps existed and there will be an active process to hold firms to account during the phased implementation.
Next actions
None – for information and awareness.