FCA issue letters to firms setting out Consumer Duty expectations
FCA have sent portfolio and sector-specific letters to firms setting out their our expectations for Consumer Duty implementation, and to reflect findings from its review of firm implementation plans.
Portfolio letters with targetted information on the Duty have been published for a number of sectors, including:
asset management, custody & fund services and alternatives
contract for difference (CFD) providers
Other sectors, such as payments services and e-money and credit brokers, will receive letters very shortly.
What should firms do?
Firms should take note of the relevant sector letter. If the letter raises issues or questions not already covered by the firm’s implementation plan, you should take action to address these.
FCA will soon be sending a survey to a sample of firms to help them understand the progress being made (or not) with implementing the Duty. They also plan to carry out targeted engagement with smaller firms. If this is a worrisome thought, we suggest using the FCA feedback and guidance as an opportunity to re-focus (and adjust where needed) the firm’s existing programme of work to implement the Duty.
ComplyCraft can provide training to staff and have tools to help manage and direct implementation efforts. Please get in touch if you’d like assistance.