FCA warns of impending Consumer Duty deadline
What has happened?
In May 2023, with fewer than ninety days to go until the start of the Consumer Duty, the FCA has urged firms to ensure they are ready for the 31 July deadline.
What are the key points?
In a speech given on 10th May, Sheldon Mills, the Executive Director of Consumers and Competition at the FCA, warned that firms that ignore the Duty or that pose the most harm can expect swift action.
The FCA has promised that the supervisory and enforcement approach will be proportionate to the harm – or the risk of harm – to consumers, with a sharp focus on outcomes. The regulator has undertaken that it will prioritise the most serious breaches and will act swiftly and assertively where evidence of harm or risk of harm to consumers is found. In some cases, firms can expect robust action, such as interventions, investigations or possible disciplinary sanctions.
On the same day, the FCA shared the findings from its review of 14 firms’ fair value assessment frameworks, which highlights good practice and areas for further consideration. The review found that firms had carefully considered the FCA’s price and value requirements, but that some firms have more work to do to meet the rules. The FCA has set out four key areas for firms to focus on, which include collecting evidence that demonstrates that products represent fair value and having clear oversight of actions to take if products do not provide fair value.
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 governance, fair value assessments, or more general regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to info@thistleinitiatives.co.uk.