What can firms and customers expect from the consumer duty and other regulatory reforms?
The new Consumer Duty seeks to build trust and confidence in financial services, supporting consumers, businesses, and the wider economy.
The FCA hope the reforms will deliver:
Products are expected to come with timely and clear information that customers can understand, so they can make informed financial decisions. It’s important to ensure they have the key product information, such as its features and charges, easily accessible and understandable.
Products and Services.
Firms should be offering customers products that meet their needs, rather than pushing products that aren’t suitable or needed. Often consumers are being pushed into high risk investments, unaffordable high cost credit and unsuitable debt products that do not meet their needs.
Firms are expected to ensure customers are supported throughout their relationship with them and consider the best ways to engage including digital or non digital. This is to solve customers' problems quickly and effectively.
Price and value.
Consumers should receive fair value. Firms are to satisfy themselves that the prices they charge are reasonable for the benefits.