On 31 July 2023, the FCA’s Consumer Duty comes into effect, bringing changes that set higher standards of care, enhanced protections and “good outcomes for retail finance customers.” Its single goal is to put the customers’ interests first in an ever-complex market.
The Consumer Duty’s purpose is to encourage financial services firms to take some of the pressure off customer decision making by carefully considering their customers’ needs, personalities and objectives.
To support you in this considerable change to the financial services market, we’ve created a comprehensive fact sheet, which you can download here, and are sharing everything we know at the beginning of this new journey.
What are the disclosure requirements of the Consumer Duty Act?
The FCA wants – requires – financial service firms to monitor and prove their business is putting their customers’ needs first. The onus is on the industry to make this work – and it’s in our interests to do so. Who doesn’t want customers who feel supported and cared for?
Every business in the distribution chain must follow the duty and prove they’re doing everything in their power to make their financial service accessible to all their customers.
Any business that can influence material aspects of the design, target market or performance of a retail financial services product or service, even where they did not have a direct relationship with the retail customer, is expected to step up.
Clear and present support that works
Ensure your support channels are effective and benefit your customers’ use of your products. Unclear or confusing digital (or other) customer journeys will not meet this standard.
Deal with non‑standard issues
Be ready with exceptions processes to deal with non‑standard issues. These could include security or fraud concerns, technical issues or other more complex or sensitive customer journeys.
Deliver operational resilience
Be able to continue a reasonable level of customer support should temporary works, an IT outage or cyberattack disrupt your services.
Support consumers with protected characteristics
Under the Equality Act 2010, you have a duty to make reasonable adjustments for customers who live with a disability or impairment.
Support consumers with changing needs
Be mindful that anyone, including those who are tech‑savvy, can become vulnerable, either temporarily or permanently. If a customer’s circumstances change, be ready to adapt the level of support you offer.
We have a wide range of Optimus products to prepare you for the Consumer Duty Act and give you confidence in conveyancing products. As well as fixed-fee pricing on conveyancing products, you get always-on access to market data and access to our customer service knowledge, so you can hit the mark every time.
When we all work together, customers and the industry benefits, so we’re here to support you as you prepare for this change.
Find out how Optimus can make your life a little bit easier: