Insights
FCA Updated Changes to the Consumer Duty
The FCA have announced this morning, that as of today, the regulator no longer requires firms to have a “Consumer Duty Champion”. Firms can choose to retain a Champion should they wish to do so, however the mandated obligation to have one has been removed. This change aims to provide greater flexibility for firms with an updated version of the Finalised Guidance on the Duty (FG22/5) to follow and reflect the change.
Nikhil Rathi gave a speech this morning at the Association of British Insurers roundtable highlighting how the FCA is working towards reducing burdens, pursuing international competitiveness and various growth initiatives. The speech highlighted the increased pace at which the FCA will be moving, with 50+ growth proposals made to the Prime Minister, ushering in further changes to the financial sector.
It is prudent to stress the ongoing obligations under the Duty. Whilst the FCA may be working towards relaxing some rules in this area, such as the requirement to have a Duty Champion, firms should not take this as an indication to not take the Consumer Duty requirements seriously. In December, the FCA set out its Consumer Duty priorities for the remainder of 2024/2025, indicating that supervision in this area through its thematic, multi-firm and market-wide work remains pertinent to meeting their objectives.
Firms should be continuing to evolve their Consumer Duty implementation. The FCA has made clear on several occasions that implementation of the Duty is not a ‘once and done’ process and requires ongoing compliance. Firms should take note of the various sectors the FCA has set out for more targeted interventions and keep one step ahead.
Objectivus provides both retained and ad-hoc regulatory compliance consulting services. Including ongoing advice in this area as well as health checks to provide independent assurance that firms are continuing to meet their obligations.
For further information please contact Bhavisha Patel bp@objectivus.com or +44 (0)2034 573 283