Regulators, including the Financial Conduct Authority (FCA), Ofgem, and Ofcom, have issued announcements and joint letters stressing the importance of customer treatment and the adoption of the consumer duty. The regulators are urging collaboration, sharing of best practices, and improved debt recovery practices among firms regulated by the FCA, water companies, energy companies, and broadband providers. The FCA also published survey results indicating a low level of readiness among smaller regulated firms for the consumer duty deadline of July 31st.
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Key Points
- Regulators are calling for increased collaboration and sharing of best practices among firms dealing with consumers in financial difficulty.
- The joint letter emphasizes the need for improved debt recovery practices and acknowledges the impact on millions of consumers with multiple relationships and potential debts.
- The FCA survey revealed a lack of readiness among smaller regulated firms, with a significant percentage unaware of the consumer duty and its importance in business operations.
- Sectors such as advice and retail finance showed low levels of readiness for the consumer duty implementation.
- The FCA plans to conduct a webinar in July specifically for the advice sector to communicate expectations and improve readiness.
Key Statistics
- Around 70% of surveyed smaller regulated firms were aware of the consumer duty, highlighting a lack of knowledge among a significant portion.
- Only 58% of respondents in the survey recognized the importance of the consumer duty for business operations.
Key Takeaways
- Firms regulated by the FCA, water companies, energy companies, and broadband providers should collaborate and share best practices to improve customer treatment.
- Readiness for the consumer duty deadline of July 31st is relatively low among smaller regulated firms, indicating the need for increased awareness and preparation.
- Sectors such as advice and retail finance need to prioritize understanding and implementing the consumer duty.
- Regulators are emphasizing the importance of effective communication, vulnerability management, and eligibility checks for social tariffs and priority service registers.
- The FCA webinar planned for the advice sector will provide further guidance and expectations for meeting the consumer duty requirements.
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