FCA Board Minutes Cover New Consumer Duty

The FCA has published its board minutes from a meeting on 26 May, covering, among other things, an update on the Consumer Duty.

According to the minutes, feedback from external stakeholders on the proposed rules and timescales is being addressed and any associated risks mitigated. The minutes note that “consultation responses had been reviewed in detail and the rules were being developed to address concerns raised with supporting guidance.”

The final rules may differ slightly from what’s set out in ‘A new Consumer Duty: Feedback to CP21/13 and further consultation’, but we will keep you up-to-date with any changes.

The final rules are still expected to come into effect in July, but there will also be a phased implementation period allowing firms time to embed and deliver the new rules. The specifics of the implementation period are still to be discussed. Communications from the FCA will also follow, “including at sectoral level and small firm engagement, through supervisory work, live and local events, webinars and guidance on [its] website.”

The Board also highlighted the potential reputational risk of the Consumer Duty not coming into force during the height of the cost-of-living crisis – as this is when consumers will need additional protections the most. Options to mitigate the reputational risk were discussed and include “placing an obligation on, or signalling to sectors most impacted by the cost-of-living pressures.”

Other issues covered in the minutes include the D&I Framework, and the FCA’s Freedom of Information Act (FOI) and Subject Access Request (SAR) cases.

Our Aviva Development Zone Course of the Month for July is ‘An Introduction to the Consumer Duty’ which provides an overview of and introduction to the upcoming regulation. If you are not already signed up to the system, go here to access a 14-day free trial: https://mydevelopment.zone/#getStarted Further learning content on the Consumer Duty will follow over the coming weeks.

RWA has also launched a Consumer Duty gap analysis. If you would like more information about this, please contact your RWA Business Manager or get in touch via email at helpdesk@rwagroup.co.uk or call 1604 709509.

About the author

Steve has over 15 years of experience in retail general insurance, including influential roles at Hallmarque Assistance Ltd, Endsleigh and more recently as Compliance Director for Premium Choice Ltd, a large independent insurance broker.

Steve is Head of Compliance at RWA and is responsible for the day to day needs of some of RWA’s larger clients nationwide, often working with RWA’s senior team on larger more complex projects such as those involving remedial works, auditing of standards, developing compliance frameworks and providing project assurance, particularly when subject to FCA scrutiny.

Get RWA Insight In Your Inbox

Regular business news and commentary delivered direct to your inbox each week. Sign up here