TAKE ACTION ON BOARD REPORT

We are urging firms to start preparing for the inaugural Consumer Duty board report, due in July, if you haven’t done so already.

Don’t forget, you now have less than three months to complete the assessment, which is the first significant milestone since the new regulations were introduced.

Our director, Vicky Pearce, said: “If firms are not already thinking about how to tackle the Consumer Duty board report, they need to start now by taking a look at the data that will be used as supporting evidence. Does it address the key areas that could result in poor outcomes for customers?”

The FCA has made it clear it will request board reports, along with the data that sits behind them, in its bid to assess how firms are embracing the new regulations. Their purpose is to review and approve the work being done to meet the Consumer Duty.

Vicky added: “The report should be seen as an opportunity to evidence steps that are being taken to drive good results. For the most part, we expect existing management information can be used, as this will likely cover a lot of the risk areas within a firm. For example, training and competence, suitability of advice and sales. However, there could be gaps that need to be reviewed, which require new metrics and data to show an understanding of customers and that appropriate action is being taken when problems are identified.

“We are recommending firms document a data strategy that shows they have identified the risks that may prevent good outcomes and how data will be used to detect issues and the triggers or thresholds that would prompt escalation.”

To assist with completion of the board report, we are urging firms to review the FCA’s publication giving examples of good and poor practise during the Consumer Duty implementation process. we have also developed a board report template and data strategy to assist clients.

For more information about preparing for the first Consumer Duty board report, don’t hesitate to contact us.