Some firms "lagging behind" the Consumer Duty

A review of how financial services businesses have implemented their new mandate to deliver good outcomes for retail customers has left the regulator disappointed by some of the efforts. Denis O'Connor summarises the good and the must-do-better.

Denis O'Connoris a fellow of both the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Securities and Investment. He was a member of the British Bankers' Association Money Laundering Committee from 2003-10 and a member of the Joint Money Laundering Steering Group's board and editorial panel between 2010 and 2016. He has been a frequent speaker at industry conferences on financial crime issues, both in the United Kingdom and abroad.

The Financial Conduct Authority recently published its review of how firms have implemented the new Consumer Duty, which came into effect on 31 July 2023. [1] While welcoming the endeavours by many firms to secure good outcomes for their retail customers, the regulator observed that some firms were "lagging behind". The supervisor reminds firms that they should "aim to continuously address issues that risk causing consumer harm". Hence, it has published examples of both good practice and areas where improvements are needed, to assist firms to improve consumer outcomes. It also suggests that firms consider the review when planning their implementation of the Duty on 31 July 2024 for closed products and services.