Starling Insights Editorial Board
May 17, 2023
The Financial Conduct Authority(FCA) recently warned companies that are not ready for the impending Consumer Duty after discovering shortcomings in plans for implementing the landmark reforms. According to Sheldon Mills, the FCA's executive director of consumers and competition, firms "can expect [the FCA] to take robust action, such as interventions or investigations, along with possible disciplinary sanctions."
"We will prioritise the most serious breaches and act swiftly and assertively where we find evidence of harm or risk of harm to consumers," said Mills.
Under the new Consumer Duty, financial service providers will be required to demonstrate that their products and services deliver good outcomes for customers. The rules will come into effect on July 31 and have been controversial, with critics dismissing them as vague and firms expressing concerns about potential compensation claims.
Speaking on the matter, trade body UK Finance said: "Firms are working hard to implement the requirements of the new consumer duty and the further information provided throughout the implementation period has helped them to understand regulatory expectations, alongside areas where further work is needed before the July deadline."
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