It’s no secret: the Consumer Duty is a major overhaul of the retail finance market. A sweeping reshape of the way financial firms serve customers, the Consumer Duty sets the bar for putting consumer needs first.
When it comes to implementation, firms must keep customer objectives, needs, and capabilities at the forefront. Actions like empowering customers with key information concerning the cost and consequences of products and services are at the heart of the Duty. Providing balanced and clear information at the time of purchase is also critical, while allowing customers to make informed decisions.
The Duty also extends to customers with vulnerable characteristics, including those who are ill, elderly, of limited means, or not fluent in English. Such customers must have access to services and products which promote their best interests. Tailored advice is essential to meet their needs, while proactive customer checks must be conducted to ensure that the customer is not receiving financial products and services which are unsuitable.
The scope of the Consumer Duty is wide-ranging, and it reinforces what financial firms have always had as its cornerstone: putting consumer needs first. In building out the Duty, firm’s must commit to upholding the investments needed to put customers at the heart of everything it does.
These advances in consumer protection mean customers receive the highest quality of services and advice. They can feel confident that their financial needs, objectives, and capabilities are taken into consideration and that they have access to the best services their firm can offer. And this ultimately allows customers to make informed decisions and feel safe in the knowledge that their trust has not been betrayed.