Have you heard about the FCA’s forthcoming Consumer Duty?

One of the things we are most proud of at TPO is that we always seek to put our client at the heart of everything we do. Whilst we won’t always get things right first time, every time, we gear our processes, communications, advice, service delivery and ongoing investment towards delivering the best service and solutions we possibly can, and this is why we welcome the FCA’s new Consumer Duty which takes effect from 1 April 2023. 

What are the new rules?

The new rules, the Duty, are clear and continue along existing regulatory themes, but with a sharper focus on delivering good client outcomes. Firms must act in good faith, avoid foreseeable harm to retail consumers and enable and support consumers in the pursuit of their financial objectives.

The desired outcomes are firms offering products and services that are fit for purpose, that represent fair value, and that are presented in a way consumers can easily understand. Firms are also expected to support consumers in realising the benefits of the products and services purchased.

Our response

At TPO, our Senior Managers are taking this extremely seriously and dedicating appropriate time and resources to ensure our preparation is thorough. Our business is founded on affording clients the highest standards of care, and acting to deliver good outcomes for all clients, through supporting and empowering you to make sound financial decisions. 

Having undertaken our internal ‘gap analysis’ and benchmarked the new rules against how we currently operate, we have identified that our corporate culture and working ethos is already underpinned by the core principles of the Consumer Duty, but we have a great opportunity for some fine tuning.

The FCA believes that for many firms, the rules will require a significant shift in culture and behaviour, and although there are aspects of our service and proposition that we will be looking to enhance over the coming months, we are delighted to say that fundamentally much of what the FCA is proposing is already well established and embedded within our business.

If you have any questions relating to the Consumer Duty, please get in touch with the regulatory team by emailing regulation@theprivateoffice.com.