Claro Wellbeing wins runner-up in the Money Awareness & Inclusion Awards
Claro Wellbeing has been awarded runner-up in the 'Best Fintech by an Established For-profit Organisation’ category of the Money Awareness and...
3 min read
Galina Stavskaya-Barengo, CFA
20-26-2023
The FCA Consumer Duty, which will come into effect on 31 July 2023, is a new set of rules that firms must follow to ensure that they treat their customers fairly and provide them with good outcomes.
The FCA Consumer Duty is a significant shift in the regulatory framework, placing the onus on firms to focus on customer outcomes rather than just regulatory compliance.
In this blog post, we will discuss how firms can prepare themselves to support and empower their customers under the FCA Consumer Duty.
The first step for firms is to understand what FCA Consumer Duty is and what it means for them.
The FCA has provided guidance on the FCA Consumer Duty, which firms can use to familiarise themselves with the rules. The FCA Consumer Duty consists of three core elements:
Firms should understand how each of these elements applies to their business and what they need to do to comply with the rules.
The next essential step for firms is to understand their consumers, their needs, wants and preferences.
This is critical to providing tailored products and services that meet their customers’ needs. By gaining a deep understanding of consumers, firms can design and deliver products and services that provide good outcomes for them.
Firms should review their customer journeys and processes to ensure that they align with the FCA Consumer Duty.
This includes reviewing how they interact with customers at each stage of the customer journey, from initial contact through to post-sales support.
Firms should identify any areas where they could improve customer outcomes and take steps to address these.
Firms should ensure that all employees are trained on the FCA Consumer Duty and how it applies to their role.
This includes training on how to understand the consumers better, how to identify and mitigate potential harms to customers, and how to provide support to customers in pursuing their financial objectives.
Firms should implement appropriate policies and procedures to support compliance with the FCA Consumer Duty.
This includes having clear policies on how to identify and manage conflicts of interest, how to handle complaints and how to provide support to customers who may be vulnerable.
Firms should monitor and review their compliance with the FCA Consumer Duty on an ongoing basis.
This includes regularly reviewing customer outcomes and taking steps to address any areas of concern. Firms should also monitor and review their policies and procedures to ensure that they remain fit for purpose and aligned with the FCA Consumer Duty.
Galina Stavskaya CFA, leads partnerships at Claro Wellbeing and will be the best person to explore if Claro Wellbeing can help you with your specific needs.
The FCA & FOS has published several documents about the Consumer Duty, including a policy statement, consultation papers, and guidance. You can find these documents on the FCA & FOS website:
A new Consumer Duty – setting a higher standard of care for consumers
Is your firm ready for 31 July 2023?Arrange a call with Claro Wellbeing to discover how we can help fast-track your firm's preparations for the FCA's Consumer Duty. |
Claro Wellbeing has been awarded runner-up in the 'Best Fintech by an Established For-profit Organisation’ category of the Money Awareness and...
Claro Wellbeing is thrilled to announce that we’ve featured in a documentary on Drip culture with Channel 4’s UNTOLD series - and it’s now available...
From 31 July 2023, firms will need to ensure they comply with the FCA’s Consumer Duty. In this article, we explore the five top challenges they’ll...