Ash was Managing Director at RWA from 2018. He had over 15 years’ experience in the legal and compliance field and ten years in broker sales and leadership roles in national and global insurance firms. Sadly, Ash passed away suddenly in August 2021.
The FCA is consulting on a new Consumer Duty aimed at setting “clearer and higher expectations for firms’ standards of care towards consumers.”
The proposed Consumer Duty would require firms:
The changes are being proposed in order to ensure that consumers get products and services which meet their needs and the outcomes that they would reasonably expect. While the FCA acknowledges that many firms are already delivering this for consumers and demonstrating good practices, they also encounter many firms which are not adequately considering the needs of their customers.
The consultation paper also highlights the needs of vulnerable customers, who are at greater risk of harm where firms are not taking sufficient care and consideration. This is in line with the regulator’s latest guidance on the fair treatment of vulnerable customers.
The proposed Consumer Duty would be set out in the FCA Handbook and, for clarity, would have three key elements, which are:
The FCA states that it wants “firms, and in particular their senior managers, to be clear about the changes in culture and behaviour that we [the FCA] intend the Consumer Duty to bring about.”
Feedback on these proposals is sought by 31 July 2021, when the consultation closes.
The FCA aims to publish a second consultation by the end of the year, with the any new rules expected to be in place by 31 July 2022.
To read the consultation paper in full, go here.
RWA will continue to provide updates on these proposed changes as the consultation process continues. For further advice, please contact your RWA Business Manager.
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