The FCA has launched a drive to support firms through the transition to the new Consumer Duty requirements in July.
The regulator says that it will support firms with a “programme of engagement” including regional in-person events for specific groups of small and medium-sized firms.
The FCA is also writing to firms setting out the new requirements with different letters for key sectors such as asset management, consumer investments and life insurance.
The Consumer Duty will require firms to treat customers fairly and transparently throughout their customer journey. The watchdog believes the Duty will raise consumer protection standards.
The ‘Dear CEO’ letters will set out the Duty expectations for firms. Some letters have already been sent with others, for example to retail finance providers and mortgage intermediaries, to be sent shortly.
As firms continue to get ready for the implementation of the Consumer Duty, the Financial Conduct Authority (FCA) says it will help firms embed the new Duty requirements.
Sheldon Mills, executive director of consumers and competition at the FCA, said: “We want to thank firms for the hard work they’re putting into embedding the Duty. We were encouraged to see many examples of good practice in our review of implementation plans and found that many firms are embracing the shift that the Consumer Duty brings.
“Putting good outcomes for customers at the heart of firms’ strategies and business objectives will build trust and modernise how we regulate financial services.
“Leaders have a key role to play here. We have a world-leading financial services industry which serves its customers, colleagues and shareholders well through competition, innovation and leveraging talent. We want to see boards and senior management further embed the interests of customers into their firms’ culture and purpose.”
The FCA says the Consumer Duty is a “cornerstone” of its three-year strategy and will introduce a more “outcomes-focused” approach to consumer protection and sets higher expectations for the standard of care that firms provide customers.
The FCA also believes the Duty will lead to a “simplified and less reactive” form of regulation, which will allow firms to innovate and compete more effectively.
