Reacting to the FCA’s final rules and guidance for a new Consumer Duty published today, Alex Ellerton, Financial Services Partner, Grant Thornton UK LLP, comments:
“It’s encouraging to see that the final rules today continue the direction of travel from a long consultation period. Many firms have already invested time and effort in understanding the impact on their business, and the improved clarity around the regulator’s expectations in a number of key areas is helpful.
“The more lenient and phased implementation period of the end of July 2023 for new and existing products and services, and the end of July 2024 for all closed products and services will likely be welcomed by the industry.
Whilst allowing some further time for preparation, this remains the most significant change in conduct regulation in the last 20 years and it is essential that individual firms have a clear articulation of how they will prioritise implementation plans in a way that fits their unique business models and delivers the right outcomes for their customers.
A need for careful consideration of end-to-end customer journeys, and interaction with other parties involved in the distribution chain, means that the time available to deliver against the FCA’s expectations remains challenging.
“From a governance perspective, senior management teams should also be very mindful of interim dates that the FCA has set out, to ensure that firms have no doubt as to the expectations on them during the implementation period. Time is of the essence and firms need to be smart about leveraging existing good practice and maintaining the momentum of work to date, in order to show they understand the change in mindset expected by a regulator keen to be seen as being more agile and assertive in its supervision of the industry.”
News release
Grant Thornton reaction to FCA’s final rules and guidance for a new Consumer Duty
27 Jul 2022
Reacting to the FCA’s final rules and guidance for a new Consumer Duty published today, Alex Ellerton, Financial Services Partner, Grant Thornton UK LLP, comments:
“It’s encouraging to see that the final rules today continue the direction of travel from a long consultation period. Many firms have already invested time and effort in understanding the impact on their business, and the improved clarity around the regulator’s expectations in a number of key areas is helpful.
“The more lenient and phased implementation period of the end of July 2023 for new and existing products and services, and the end of July 2024 for all closed products and services will likely be welcomed by the industry.
Whilst allowing some further time for preparation, this remains the most significant change in conduct regulation in the last 20 years and it is essential that individual firms have a clear articulation of how they will prioritise implementation plans in a way that fits their unique business models and delivers the right outcomes for their customers.
A need for careful consideration of end-to-end customer journeys, and interaction with other parties involved in the distribution chain, means that the time available to deliver against the FCA’s expectations remains challenging.
“From a governance perspective, senior management teams should also be very mindful of interim dates that the FCA has set out, to ensure that firms have no doubt as to the expectations on them during the implementation period. Time is of the essence and firms need to be smart about leveraging existing good practice and maintaining the momentum of work to date, in order to show they understand the change in mindset expected by a regulator keen to be seen as being more agile and assertive in its supervision of the industry.”
Experts / Authors
Alex Ellerton
Alex Ellerton - I advise clients across the retail financial services sector on regulatory matters. With a particular focus on banking, lending, wealth management and retail intermediary firms, I regularly work with senior management teams to identify practical and proportionate responses to regulatory challenges.
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