Firms should critically assess how they approached the review of their open products and consider applying good practice to products and services in scope from July 2024.
This could include replicating the project governance structure or adapting timelines where activities took longer to complete than expected.
FTA: Do you foresee much enforcement action related to the consumer duty?
CW & BN: Consumer duty is and will likely continue to be a critical element of the FCA’s supervisory strategy.
Firms should expect continued engagement on the topic, with an expectation that they can prove they are achieving good outcomes.
They should expect the FCA to closely monitor implementation and to begin building a review of implementation into its supervisory work plan shortly after July, beginning with the largest firms.
The current economic climate and cost of living pressures are likely to result in the regulator taking a strong stance on firms that do not comply with the new duty.
Sheldon Mills, executive director of consumers and competition at the FCA, has said the FCA will prioritise the most serious breaches and act swiftly and assertively where it finds evidence of harm or risk of harm to consumers. This could include interventions or investigations, along with possible disciplinary sanctions.
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carmen.reichman@ft.com
