The Financial Conduct Authority has made it clear that Consumer Duty is not a "once and done" exercise and firms should be continually challenging themselves to ensure they are delivering good outcomes for clients.
Consumer Duty implementation can be a complex journey and there are common areas that are often overlooked or underestimated.
To help firms to avoid some of the common pitfalls and continue to make the changes needed, the Leaman Crellin team have put together some Consumer Duty top tips.
Top Tips
Don’t forget about prospective customers
While existing clients are often the primary focus, it’s important not to overlook potential consumers. By including them in your customer journey analysis and feedback gathering process, you can proactively identify risks and opportunities to better serve them in the future.
Communication is key
Effective communication is critical in ensuring that all consumers, especially those with vulnerable characteristics, can understand the messages being conveyed. Clear, accessible, and comprehensible communication is essential for fostering trust and adding value to the customer experience.
Feedback is invaluable
Designing feedback mechanisms that encourage open and candid dialogue can uncover valuable insights and highlight areas for improvement. Embrace constructive feedback, even if it may be difficult to hear, as it can drive positive change and enhance customer outcomes.
Regular reviews are essential
Ensure that remuneration and performance management frameworks are regularly updated to align with Consumer Duty requirements. Merely including a line in staff performance reviews about considering the Duty is not enough - tangible evidence of compliance is key.
Training should be ongoing
Implementing Consumer Duty measures is not a one-time event, but an ongoing commitment. Training programs should be tailored to the specific needs of your firm and continuously monitored and adapted to address emerging risks and challenges.
By addressing these top tips into your Consumer Duty implementation plan, you can ensure that your firm is well-equipped to deliver consistently positive customer outcomes and meet regulatory requirements.
Should you need expert guidance or resources, please get in touch with the team at Leaman Crellin. We offer hands-on support, training or access to resources like our Consumer Duty Checklist and Consumer Duty Solutions. We also offer Health Checks for firms to ensure that their regulatory health is optimal.
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