FCA urges firms to prepare for Consumer Duty deadline

The FCA has urged firms to ensure they are ready for the impending Consumer Duty deadline on 31 July, as it looms with fewer than 90 days to go. 

With the strong reminder, the authority has also shared findings from its review of firms’ fair value assessment frameworks, which highlight good practice and areas for further consideration, to further support firms before the July deadline. 

The review found that firms had “carefully” considered the authority’s price and value requirements, but that some have more work to do to meet the rules. 

This comes as the FCA has set out four key areas for firms to focus on, which include collecting evidence that demonstrates products represent fair value, while also having clear oversight of actions to take if products do not provide fair value. 

The current rise in living costs makes it “all the more vital” that consumers get fair value, according to the authority, as it believes firms should strive to offer the best to compete for customers. 

The executive director of the FCA, Sheldon Mills, also warns that firms who ignore the deadline or pose the most harm “can expect swift action”. 

He said: “Our supervisory and enforcement approach will be proportionate to the harm – or risk of harm – to consumers, with a sharp focus on outcomes. We will prioritise the most serious breaches and act swiftly and assertively where we find evidence of harm or risk of harm to consumers.  

“In some cases, firms can expect us to take robust action, such as interventions or investigations, along with possible disciplinary sanctions.”

He added: “Since we published our final rules and guidance in July last year, the financial services industry has worked with us to meet parliament’s will to implement the new Consumer Duty.  

“The Duty will mean that consumers should receive communications they can understand, products and services that meet their needs and offer fair value, and they get the customer support they need, when they need it.”