Today (31st July 2023) sees the official go-live of the much anticipated “Consumer Duty” regulatory change instructed by the Financial Conduct Authority (FCA).
The FCA has worked closely with industry stakeholders, conducting extensive consultations and providing guidance to ensure a smooth transition for financial institutions. This collaborative approach has fostered a sense of confidence and preparedness among market participants, who are eager to implement the necessary changes to comply with the Consumer Duty requirements.
So, what can consumers expect Consumer Duty to do for them?
Consumers can expect improved transparency in understanding the range of products available to them and the features they offer. They will also benefit from better pricing information, enabling them to make more informed decisions about the value they receive. Additionally, the level and quality of support provided by financial institutions should see significant improvements, ensuring that consumers feel supported and confident in their financial choices. Overall, these enhancements aim to create a more consumer-centric market and empower individuals to make well-informed decisions.
Over the coming months, we will begin to see early insights on how Consumer Duty is embedded into organisations, along with any unintended consequences that may arise. It will be crucial for regulators to closely monitor the implementation of these enhancements and make necessary adjustments to address any potential issues. By doing so, they can ensure that the intended benefits of Consumer Duty are realised and that consumers are truly protected in their financial interactions.
At Pro-Sourcing, we understand the importance of balancing the need for consumer protection with the potential increase in operating costs. It is crucial to carefully evaluate the implementation of Consumer Duty to minimise any negative impact on businesses and consumers alike. Our team at Pro-Sourcing is here to assist you in navigating these challenges and finding the most effective solutions for all.
Don’t hesitate to reach out to [email protected] for guidance or to discuss any concerns you may have.
