Some quick thoughts on the FCA decision to look again at the Consumer Duty regs;
Helen Slater, Regulatory Manager at FE fundinfo said: “The FCA has taken the opportunity to announce a call for input into the complexities experienced by firms when implementing the rules.
“We all know that regulatory creep and duplication is pretty much inevitable when rules are designed to be overarching and cover such a wide range of firms, products and consumers. So, the FCA’s announcement is a welcome one and will give firms the opportunity to raise their concerns with the Regulator by 31 October. Duplication makes the rules longer than necessary but shouldn’t make them harder to comply with; it will be more interesting to see if firms are able to identify any areas where adhering to the Consumer Duty may make compliance with other rules harder.
“Additionally, it will be interesting to see what issues materialise around how consumers are treated. Let’s remember that it’s not that long ago that a lot of firms claimed not to have a single vulnerable customer on their books. While the FCA stated that at least 50% of consumers are vulnerable at some point due to their financial circumstances; life events; health issues; and understanding of financial matters. Those first Board reports will no doubt make interesting reading
What should be easier for firms to work with is the introduction of closed products to the scope of Consumer Duty, as there are no communications aiming to get consumers to part with their money. The main focus there should be on checking whether the products deliver what they had promised and whether there are any unreasonable barriers to switching out into other products.”
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