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What has happened?

In February 2023, the FCA advised that some firms are using inappropriate tactics in an effort to avoid the Consumer Duty Regulation. In a speech entitled Call of Duty: How putting customers front and centre will help industry innovate that was delivered on 22 February, the FCA’s executive director of competition and consumers, Sheldon Mills, stressed that the Consumer Duty Regulation will not “go away”.

What are the key points of the speech? 

We believe that the following points made should be noted by firms.

• “A small number of firms may have seen the task as too big and adopted an avoidance tactic in the hope that it will all go away. On behalf of your industry peers who have made the effort, we can confirm that the Consumer Duty Regulation will not go away. Their hard work has not been wasted. And you still have time to deliver. But you must act now. The deadline of 31 July will not be moved”.
• “Recently we took a deep dive into the plans from around 60 of the largest firms who have fixed supervisory teams and who operate mainly in retail financial services markets……….Some initial efforts to address the Duty appeared superficial while others were over-confident in their existing systems. In one example, there was no evidence of engagement with the firm’s Chair or other non-executive directors, and the board only asked one question before approving the plan. In another example, board minutes showed that the plan was approved without discussion”.
• “We will be surveying around 600 smaller firms next to check how prepared they feel with their implementation plans. Separately, some sectors are conducting multi-firm work on implementation plans”.
• “After the deadline, we will take a pragmatic and proportionate approach and will help those who are taking their final steps towards meeting the standards of the Duty. Of course, we have a duty to take action, particularly against serious breaches, and we always go after the worst offenders who are at risk of having the biggest impact on our financial services industry. I am sure that will be something supported by the many who have expended the time and resources to meet the Duty”.
• “Over the next 5 months, it will be essential for firms to work together across the manufacturing and distribution chain to deliver good outcomes. This includes where you may have outsourced the delivery of services to other parties……….One milestone to look out for is the end of April, which is when manufacturers will need to complete all reviews necessary to meet the 4 outcome rules and share information with distributors to help them meet their obligations”.

How can we help you?

Thistle Initiatives has supported firms for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as-and-when, our team of specialists can serve as your right hand in meeting and complying with regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.

Are you looking for help with your Consumer Duty Regulation arrangements, or more general regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 0207 436 0630 or sending an email to info@thistleinitiatives.co.uk.