Have you met or missed the first Consumer Duty milestone?

What is the new development?

In July, FCA published its Consumer Duty policy statement (PS22/9) and finalised guidance (FG22/5). If you haven’t already received our summary and guidance, please do let us know.

More recently, FCA published updates to their webpage for firms on different Consumer Duty topics, one of which is the Implementation Plan which FCA have said they expect to have reviewed and signed off by the Board by 31 October 2022.

Who does it impact?

The scope of Consumer Duty is intentionally broad and applies to any regulated firm that can have a material influence on consumer (retail customer) outcomes.

What do firms need to do?

The Boards of in-scope firms should review, scrutinise and agree the Implementation Plan by 31 October (or as close to this as possible). What the Implementation Plan looks like will depend on the nature of the firm’s business, their relationship with consumers and its size and resources. However, the core requirement is that it includes a series of steps and milestones that prioritise the work needed to bridge the gap from the standard under current rules to that of Consumer Duty.

Even where a formal Implementation Plan is not required because the firm has determined it is out of scope, firms are advised (as a matter of good practice and preparation) to document the technical rationale for that decision. This could be accompanied by an explanation of any consequential actions the firm plans to take.

ComplyCraft have tools available to help firms meet their obligations under Consumer Duty. Please reach out if you’d like any assistance.

When do the rules come into effect?

·        31 October 2022: Boards to agree the firm’s Implementation Plan

·        30 April 2023: Manufacturers to share information with distributors

·        31 July 2023: Implementation date for ‘open’ products (products or services that are open for sale or renewal)

·        31 July 2024: Implementation date for ‘closed’ products (products or services that are no longer marketed or distributed to retail customers or open to renewal)