On the 31st July 2023, the FCA’s Consumer Duty brings a major shift in expectations for financial services firms. These new changes set higher standards of care, enhanced protections and “good outcomes for retail finance customers.” In an ever-complex market, it puts the customers’ interests first.
By encouraging financial services firms to take some of the pressure off customer decision making, the Consumer Duty guides the industry to carefully consider all customer needs, personalities and objectives.
To support you in this considerable change to the financial services market, we’ve pooled everything you need to know about Consumer Duty in our comprehensive guide, which you can download here.
We’re here to support you as we all work to provide customer care at every stage of their mortgage journey.
What are the acts mortgage brokers need to consider?
One challenge you might face as a broker could be choosing your third-party provider. With far too many third-party providers not currently regulated by the FCA, it can be harder for you to know if the people you’re working with are compliant for your conveyancing and surveys.
To be sure you can provide your customers with the best level of care, support them in their decision making with reliable information, and give them the good outcome the FCA requires, you, as a mortgage broker, should work only with providers who tick the consumer duty boxes:
• fair value
• suitable products and services
• suitable treatment
By sticking with partners who also closely work to the consumer duty requirements, one big worry is taken care of for both you and your customers.
Strategies for mortgage brokers adapting to change
Your priority is to deliver good outcomes to consumers, so having strategies to ensure you’re doing your best by your customers will pay dividends – and help you avoid a fine for non-compliance of the Consumer Duty. When the FCA moves into monitoring and checking that brokers and financial services are following the new rules, you need to be able to prove you’re towing the line. And it’s in your interests to a. avoid a fine, and, b., have happy customers who are likely to return.
To achieve this, apply extra due diligence when you’re choosing or reviewing your third-party providers. Make sure they can meet the consumer duty deadlines and clearly have financial security. If you can confidently recommend your third-party providers to your customers, you build trust and nurture a relationship that benefits all parties and the industry as a whole.
Be ready for the new FCA regulation
At Optimus, we can prepare you for the Consumer Duty and give you confidence in the third-party providers you work with. We also have a wide range of 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.
Find out how Optimus can make your life a little bit easier: