The Financial Conduct Authority (FCA) has unveiled insights from a recent Ipsos UK survey, shedding light on the progress made by financial firms in the implementation of the Consumer Duty initiative.
Launched in mid-2023, the Consumer Duty rules aim to establish elevated and clearer standards of consumer protection within the realm of financial services, mandating firms to prioritise the needs of their clientele.
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Conducted during Autumn 2023, the survey delved into the preparedness of 634 firms, concentrating on their post-31st July 2023 actions concerning open products and services.
Notably, 43% of the surveyed firms reported a seamless implementation process, marking substantial advancements, particularly in sectors such as retail finance providers and debt advice firms, which had previously faced challenges in readiness.
Furthermore, a significant majority of firms (74%) have now identified their target markets, and 73% have appointed overseers for the implementation of the Consumer Duty.
Despite these strides, challenges persist, notably in outcomes monitoring, with payment services and wealth management firms encountering the most difficulties.
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By GlobalDataThe survey underscored positive developments in consumer contracts (38%) and marketing strategies (30%). However, the FCA, aware of the survey’s limited sample size, urged caution in making broad generalisations.
The regulatory body asserted that the headline findings offer a snapshot of the implementation landscape, providing a context for future initiatives. The commitment to taking corrective measures where necessary was emphasised.
Key findings revealed that 80% of brokers have conducted a fair value assessment of existing products. Of this, 11% are currently in the process, while the remaining percentage stated that it does not apply to their organisation. The comprehensive survey serves as a crucial benchmark for assessing the efficacy of the Consumer Duty initiative and guiding future regulatory actions.
