The upcoming Consumer Duty deadline in July has sparked a flurry of questions and concerns among Directly Authorised (DA) brokers. To shed light on these queries, The TMA Club has released a summary of the most common questions asked by brokers regarding Consumer Duty.
One area of focus for brokers is understanding the scope and vocabulary used in the guidelines. Many brokers have sought clarification on which products and services Consumer Duty applies to. The TMA Club confirms that the guidelines cover all regulated products, except for group policies. For example, consumer buy-to-let mortgages fall under the purview of Consumer Duty, while unregulated investment BTL mortgages do not. It is important for brokers to grasp this distinction to ensure compliance.
Furthermore, brokers have raised concerns about whether Consumer Duty applies to them even when they don’t offer advice. The answer is a clear yes. Brokers must ensure that the information they provide to customers is clear and easy to understand. The key is to communicate in plain English, allowing customers to make informed decisions.
To address these questions and provide support to brokers, Optimus has developed a comprehensive guide that delves into the Consumer Duty Act. The guide emphasizes the significance of consumer care throughout the entire customer journey. It underscores the need for financial services firms to prioritize the unique needs, preferences, and objectives of each customer.
At Optimus, we understand the importance of supporting mortgage brokers during this transition. We are dedicated to ensuring their success and providing the necessary tools and resources to navigate the changes with confidence. Count on us to stand by your side as we navigate the new landscape of Consumer Duty together.
Find out more about the FCA’s new Consumer Duty: