As we inch closer to the implementation of Consumer Duty taking effect on July 31st, there has been much pondering as to its value and impact. Against this backdrop, the Financial Conduct Authority’s reactions remain the focus of debate, with many questioning whether this latest initiative on their part is driven by ulterior motives.
It’s worth taking a peek at what the regulator themselves have to say about the situation. A thought experiment — what if we were to visualize for a second how they may be approaching the consumer duty from their vantage point?
The main purpose behind Consumer Duty is to make sure consumers are properly informed when shopping for financial products and services. It aims to protect customers by ensuring they’re equipped with enough knowledge to comprehend how their decisions can impact their financial future.
Naturally, the FCA have taken the development of the Consumer Duty duties seriously. The regulatory steps they have taken so far have been commended and some tangible advancements have been observed. The institution has introduced tougher enforcement proceedings and professional standards, as well as better protection from aggressive sales tactics and mis-selling.
Moreover, the FCA have set out a comprehensive approach to regulating the banking and fintech sector. This includes a wide variety of improved measures, such as easier queries and vital consumer education. These are all responsible practices that should help customers make more informed decisions.
But the FCA’s commitment to the consumer doesn’t end there. As part of their dedication to making sure people have easy access to safe and effective financial products, the FCA have also adopted a simpler approach towards registering smaller companies. This set of measures could make a huge difference to SMEs who want to dip their toes in the financial services sector.
All in all, it’s safe to say that with the Consumer Duty in full swing, the FCA are braving the storm and doing their part to make sure customers’ rights and interests are serviced. More importantly, the FCA are also showing that they care about the well-being of the industry. As they rigorously strive for a fairer, healthier market that better protects customers, the Financial Conduct Authority is one step closer to completing their mission.