FCA Consultation Paper CP21/13 - A New Consumer Duty

The FCA is continuing to increase its focus on fair customer treatment and reaching good customer outcomes.

In trying to achieve this, it published  a consultation paper earlier this year, setting out its standards of consumer protection in the retail markets for firms to adhere to. This also forms part of the FCA’s transformation programme.

The Customer Duty has been a discussion point for many years, particularly as the FCA’s principles have not always sufficiently protected consumers. We are now almost there, but firms will need to ensure that they get this right from the start. This is good news for consumers, but perhaps less for firms. To implement this it is likely to be very time consuming and costly for many firms particularly now whilst firms are reeling from the current pandemic and still having to support their customers and businesses.

The consultation closed on 31 July 2021 but further consultation will take place on the proposed rule changes by end of 2021.  Auxillias is able to support clients and their businesses whilst developing new products or when offering services to ensure that they meet the customers’ needs, the products and services represent fair value and that all communication is easily understood by the customers. We can review all the customer communication to ensure that correct terminology is used and is represented in a fair manner.
Auxillias can also review general business practices and help to put processes in place so that information relating to consumers is not used adversely or exploited. We can also offer workshops and training so that staff are fully trained to recognise behavioural biases or vulnerabilities of customers – these being the key customer harm the FCA wants to see businesses avoid.

Please do contact us if you require support in these areas and more.