As the FCA’s multi-firm review highlights areas of focus for firms implementing Consumer Duty, Andrew Gething, Consumer Duty expert and managing director of MorganAsh has commented.
Andrew Gething said: “With six months to go until Consumer Duty comes into force, the FCA’s review highlights the considerable work still required by many firms. The overarching goal of achieving good customer outcomes has created an air of complacency among some firms who believe this is something they already achieve.
“This is reflected in the report which highlights weak implementation plans, a lack of engagement with senior leaders and a shortfall in adopting new technology. Importantly, the FCA rightly identifies a lack of data strategy, especially to monitor and evidence outcomes. This should absolutely be a key focus for firms, and I would argue that successfully managing vulnerability data is key to all other aspects of the regulation.
“Without an objective and consistent approach, many firms are still reporting vulnerable customers in single figures. Meanwhile, firms using tools such as MARS are reporting closer to 50 percent, in line with the FCA’s own Financial Lives survey. With such a clear disparity, it’s impossible to ensure fair value or that products meet the needs of clients – key areas of focus for firms.