FCA sends Consumer Duty survey to cross-sector firms

The FCA has today (21 March 2023) sent out a survey to collect information on how prepared companies are to implement its Consumer Duty regulations prior to the deadline of 31 July 2023.

The survey, seen by Insurance Times, is being carried out by polling organisation Ipsos Mori and was sent to over 600 cross-sector firms – it asked for anonymous responses to queries about the awareness of the requirements the new regulations would impose on firms.

In one question, the FCA asked “to what extent, if at all, do you understand what your organisation needs to do to meet the requirements of the Consumer Duty?”

The regulator also questioned whether the surveyed firms thought the support available from the FCA to help meet Consumer Duty’s requirements was sufficient.

The Consumer Duty regulation sets out a slew of updated regulations for insurance firms and other financial services firms that must be implemented by a deadline of 31 July 2023.

It includes requirements to end “rip-off” charges and fees and provide helpful and accessible customer support, among other outcomes based on a new standard of fairness.

In January this year, specialist insurer Ecclesiastical published the results of a survey that revealed three in five (60%) surveyed brokers admitted they did not understand how the new regulations would affect their businesses.

The research – which surveyed 250 brokers – added that only 53% of respondents were aware of the regulator’s new rules.

A challenge? 

At the beginning of this year (25 January 2023), the regulator told the industry that some firms were further behind in their planning for the implementation of the new regulations and may struggle to apply the rules effectively once they come into force.

Its survey highlights that the FCA is keen to measure the effectiveness of its own communications and take the temperature of the industry to examine how close firms are to implementing the new rules.

Commenting on the survey, Branko Bjelobaba, principal at compliance consultancy Branko, said the survey “shouldn’t worry those that are working towards [implementing Consumer Duty]”.

He added: “The duty introduces a new principle that requires firms to ‘act to deliver good outcomes for retail customers’ when it comes to products, services, price, value consumer understanding and support – surely none of these should pose a challenge?”