Context
The FCA has published a new web page setting out its priorities under the Consumer Duty for the remainder of 2024/25.
The web page includes a short description of the work and anticipated timelines. As part of meeting its secondary objective to facilitate international competitiveness and growth (and make the UK an easier place to be an authorised firm), the FCA is now taking the opportunity to review its wider rules to see how it can use the Consumer Duty to simplify its requirements.
Key points to note and next actions
The FCA’s Consumer Duty focus covers thematic, multi-firm and market-wide work, relevant to a wide set of stakeholders. Most work is not in addition to its usual supervisory activity, but rather a focus the Consumer Duty.
The FCA’s four ‘focus areas’ are:
- Embedding the Consumer Duty and raising standards – assessing how firms are implementing and complying with the Duty:
- A review of board / governing body reports and complaints and root cause analysis
- A review of treatment of customers in vulnerable circumstances
- A review of consumer support outcome and supporting informed decision-making
- Enhancing understanding of the price and value outcome, including:
- Sector-specific priorities, including:
- Digital journeys assessments in consumer finance
- Claims handling arrangements – looking at insurers’ claims handling and whether good consumer outcomes are being achieved
- Realising the benefits of the Consumer Duty, including:
- The FCA setting-out its next steps following its three-month Call for Input on the Consumer Duty which it launched at the end of July 2024. (The deadline for responses was 31st October 2024, and the FCA will set out next steps in the first half of 2025