A New Era in Consumer Protection

The UK financial services sector is facing a game-changing regulation with the Consumer Duty, effective for closed products from July 2024. This isn't just a tick-box exercise—it's a mandate to put customer outcomes front and centre. If you're in the fintech space, buckle up. Here's what you need to know to stay ahead of the curve.

What You Need to Know

The Consumer Duty is shaking things up, focusing on real outcomes rather than just processes. Here are the highlights:

Supervision and enforcement: The FCA means business. Firms must prove they're delivering good customer outcomes. Expect swift action for serious breaches—think interventions, investigations, and possible sanctions.

Outcomes monitoring: You can't just claim compliance—you've got to show it. This means using data to prove your customers are getting a fair deal. Tailor your approach to your firm's size, client base, and services.

Annual Board reports: Every year, your board needs to sign off on a report detailing customer outcomes. First deadline: 31 July 2024. No templates here—customise it to fit your business.

Board champions: Appoint a Board-level champion to keep customer outcomes at the forefront. This isn't a passive role—they need to actively challenge and drive discussions.

Vulnerable customers: Identify and support vulnerable customers. Implement systems to allow customers to disclose their needs and train your staff to recognise signs of vulnerability.

Impact on Fintech

Payments

For payment firms, transparency is king. Regularly review your fee structures and customer feedback. Keep it fair and clear.

Crypto

Crypto firms, you're in the spotlight. Simplify your communications and support systems. Make sure your customers understand what they're getting into.

Insurtech

Insurtech companies, focus on fairness throughout the customer lifecycle—from policy sign-up to claims handling. Regular reviews are essential.

Compliance tips: Get ahead of the curve

Want to ace this? Here's how:

1. Boost your data game: Invest in cutting-edge analytics to monitor and prove customer outcomes. This is your compliance backbone.
2. Engage your board: Get your Board on board—literally. Appoint a champion and make customer outcomes a regular agenda item.
3. Execute the annual report: Develop a robust framework for your annual report. Metrics, insights, actions—cover it all.
4. Support systems for the vulnerable: Set up systems to support vulnerable customers. Train your staff and leverage tech tools to capture customer needs.

Ready to take action?

The Consumer Duty isn't just a regulation—it's an opportunity. Stand out by delivering excellent customer outcomes. Need help? Contact ComplyEasy for expert compliance support.