UK - Navigating the right path: Our Consumer Duty podcast series

• United Kingdom

• Financial services and markets regulation
• Financial services disputes and investigations
• Financial services
• Financial services - Consumer Duty

27-09-2022

Welcome to our Consumer Duty podcast series, focused on the UK Financial Conduct Authority's (FCA) plan to introduce a new Consumer Duty for all firms which provide financial services and products to retail consumers in the UK. Each episode, our cross-practice team will discuss the next steps firms need to take in order to meet this new higher standard ahead of the end of the implementation period in April 2023.

You can also find links to relevant briefings on the topic of the Consumer Duty below.

The Consumer Duty: a significant shift in retail financial services

Implications of the new Consumer Duty for Asset Managers

New Consumer Duty is front and centre of FCA's priorities for credit regulation

Planning for a new Consumer Duty

Episode 27 

In the latest episode of our Consumer Duty podcast series Simon Collins, Managing Director of the FS Regulatory Compliance team at Konexo and Claire Carroll, Partner at Eversheds Sutherland discuss the role of the Consumer Duty Champion. They explore:

• Who the Consumer Duty Champion should be
• What regulators are expecting from this role
• Some of the challenges firms face in appointing the Consumer Duty Champion

Episode 26

In the latest episode of our Consumer Duty podcast, Claire Carroll is joined by Julian Brown to deliberate recent pronouncements from the FCA on Consumer Duty, specifically in relation to asset management. They discuss:

• The most recent messaging from the FCA highlighting the “Dear CEO” letters
• The role of the Consumer Duty champion
• Deadlines and pronouncements firms will need to consider going forward 

Episode 25

In the latest episode of our Consumer Duty podcast series, Martin Ward and Claire Carroll, both partners in our Financial Services Disputes Investigations team discuss the impact of Consumer Duty on claims management companies (CMCs). They discuss:

• The impact that the Consumer Duty will continue to have on CMCs
• The FCA’s residual concerns regarding misleading consumers including; unfair advertising, poor disclosure, and CMCs providing unregulated services
• The FCA’s future strategy for CMCs

Episode 24

In this episode, Principal Associate Ruth Fairhurst and Partner Claire Carroll discuss an update on payments and e-money including:

• The diversity of the sector
• Distribution chains and contractual relationships
• Specific issues which firms in the payments and e-money sector are likely to encounter

Episode 23

Claire Carroll speaks with Naomi Seward, Partner and Head of Retail Finance, about how the Consumer Duty will impact mortgage providers. They discuss the issues and priorities at front of mind for mortgage providers, focussing on:

• Distribution V.s Manufacturer and the impact of this on delivering the four new outcomes
• Customer understanding outcome and how this impacts communication, including Terms and conditions

Episode 22

An update on how the Consumer Duty impacts personal pension schemes, including SIPPs. In this episode Jen Green, Principal Associate in our pensions team joins Claire Carroll to discuss:

• Further guidance from the FCA on pensions and investments 
• Additional considerations for schemes with Non Standard Investments (NSI’s) 
• Future developments (expected over the next 12-18 months) to look out for

Episode 21

Tom Black and Claire Carroll, both Partners in our Financial Services and Disputes & Investigations team, discuss an update on the FCA's expectations for customer communications.

• a reminder of the key proposals
• responses recieved by the FCA and changes made to the draft rules
• FCA's response to concern around possible conflicts with other duties

• the implications for trustees and their service and product providers
• how the rules apply in the context of both defined benefit (DBC) and defined contribution (DC) pension schemes
• the impact on pension buy-ins and buy-outs
• what should trustees of occupational pension schemes be doing now?

Episode 19

Partner Jo Owens is joined by Chris Stott, Principal Associate in our Financial Services Disputes & Investigations team, to discuss the interaction between financial crime compliance and the Consumer Duty. They discuss:

• how should firms use the information they gather for Anti-Money Laundering and Know Your Customer guidelines to fulfil Consumer Duty obligations?
• suspicious activity reporting and meeting confidentiality requirements
• the impact of the Consumer Duty on firms' financial crime risk appetite
• how can firms protect themselves from unwarranted customer complaints?

Episode 18

Ian Stott, Head of Financial Services at Konexo, joins Claire Carroll to revisit the monitoring, data and MI reporting requirements set by the Consumer Duty. They discuss:

• how firms are progressing with meeting the implementation deadlines set by the final rules and guidance
• tips on applying the final rules and guidance to existing products and services
• the role of identifying, extracting and analysing data in implementation planning

Episode 17

Claire Carroll is joined by Simon Collins, Managing Director Regulatory & Compliance at Konexo, to revisit the impact of the Consumer Duty on the Senior Managers and Certification Regime and individual accountability, now that the FCA's final rules and guidance has been published.

They consider:

• the key points impacting senior management that the FCA has highlighted as part of its final rules and guidance
• implementation planning and immediate actions for senior managers
• the FCA’s expectations of the Board

Episode 16

What will the Consumer Duty mean for the treatment of vulnerable customers? In this podcast episode, Partners Tom Black and Claire Carroll discuss:

• the definition of vulnerable customers by the FCA and expectations for identifying and responding to characteristics of vulnerability
• the guidance on the treatment of vulnerable customers within each of the Consumer Duty's four outcomes
• the expectations for monitoring this customer cohort
• how are firms getting on with implementing the FCA’s guidance on vulnerable customer treatment?

Episode 15

In our second podcast episode released since the publication of the FCA's final rules, Naomi Seward and Claire Carroll take a deep dive into the FCA's expectations in relation to implementation. They discuss:

• what will the implementation plan need to address?
• what should firms be doing now to prepare?
• tips for complying with the October deadline

Episode 14

On 27 July 2022 the FCA published its final rules on the much anticipated Consumer Duty. In this episode, retail finance and payments Partner Jo Owens joins Claire Carroll to share their initial reflections on some of the key new features. They cover:

• the timeline for implementation and what firms should do now to prepare
• what does the FCA say about compliance with existing rules
• the responsibilities of firms with regards to avoiding reasonable harm and taking pre-emptive steps to redress harm
• new notification obligations for those in the distribution chain
• how the new rules will impact the sale and purchase of regulated product books

Episode 13*

The Consumer Duty will impact claims management companies (CMCs), given that they are regulated by the FCA with retail customers.

In this episode, Martin Ward and Claire Carroll, both partners in our Financial Services Disputes & Investigations team, discuss:

• how will CMCs use the Consumer Duty to advance complaints?
• what will be the impact on CMCs as regulated entities?
• how does the Duty differ from the current rules?

Episode 12*

How will the Consumer Duty impact personal pension schemes and personal pension providers? In this episode Jen Green, Principal Associate in our pensions team, joins Claire Carroll to discuss:

• the changes pension providers should consider, including customer communications and engagement, investment risk, and distribution chains
• the issues applicable to self-invested personal pensions (SIPP) providers
• top tips for pension providers

Episode 11*

Chris Busby, UK Head of our Financial Disputes and Investigations Group, joins Claire Carroll to consider how the Consumer Duty will change complaints handling.

The episode covers:

• the changes complaints handling teams will need to make to their approach
• the impact on vulnerable customers and MI
• the role of the Financial Ombudsman Service (FOS) in the new environment
• how the Consumer Duty will impact court proceedings

Episode 10*

Tom Black and Claire Carroll, both Partners in our Financial Services Disputes & Investigations team, discuss the FCA's expectations for customer communications.

• how does the Consumer Duty differ from current expectations to deliver clear and fair communications?
• what will the FCA guidance look like in practice?
• what are the key elements financial services firms should be focusing on?
• top tips for testing and reviewing communications

Episode 9*

Julian Brown, a Partner in our financial services team, joins Claire Carroll to examine how each of the Consumer Duty outcomes will impact the asset management sector.

They discuss:

• what are the key challenges for asset managers?
• how does the Consumer Duty differ from existing regulations?
• what will be the impact on the distribution chain?

Episode 8*

Technology Partner Craig Rogers joins Claire Carroll to talk about the effect of the Consumer Duty on outsourcing arrangements.

They discuss:

• the impact on intra-group agreements and third party service providers
• the timescale for implementation and advice on change management
• tips for firms on how to approach the changes

Episode 7*

Paula Gaddum, a Partner in our Insurance & Reinsurance team, joins Claire Carroll to examine how the Consumer Duty will impact the insurance sector.

They discuss:

• how the Duty differs from existing regulations, including PROD 4
• the key challenges for insurance firms, including resourcing and distribution arrangements
• what do insurance firms need to be doing now?

Episode 6*

Claire Carroll is joined by Jo Owens, a Partner in our Retail Financial Services team, to discuss how the Consumer Duty will change motor finance.

Key topics include:

• the impact of the Consumer Duty on lenders and dealers in the distribution chain
• the key challenges to implementation
• tips on ensuring clear customer communications
• how do the new requirements interact with the consumer credit regime?

Episode 5*

Claire Carroll and Gareth Vowles, both Partners in our Financial Services Disputes & Investigations team, discuss how the Consumer Duty will impact disputes.

They cover:

• the FCA's decision not to grant a private right of action
• the likely impact of the Consumer Duty on other causes of action
• whether material created as a consequence of monitoring and governance requirements will be disclosable in civil litigation

Episode 4*

Claire Carroll speaks with Simon Collins, Managing Director - Financial Services at Konexo, about how the Consumer Duty will impact the Senior Managers and Certification Regime and individual accountability.

In this episode, they discuss:

• practical tips for Senior Managers on how to execute the requirements
• how firms with both retail and non-retail businesses should approach implementation
• what does 'reasonableness' mean in practice for Senior Managers?

Episode 3*

Claire Carroll is joined by Ian Stott, Head of Financial Services at Konexo, to discuss the monitoring, data and MI reporting requirements set by the Consumer Duty.

In this episode, they cover:

• what should firms be doing now to prepare for implementation?
• the role of data in effective programme planning and management
• how to establish a programme plan

Episode 2*

In this episode, Claire Carroll speaks with Naomi Seward, Partner and Head of Retail Finance, about how the Consumer Duty will impact products and services. They discuss:

• where organisations should start with their change programme
• the scale of products and services change required
• top tips for implementation

Episode 1*

In the first episode of this series, Claire Carroll talks with Gareth Vowles, both Partners in our Financial Services Disputes & Investigations team, about the FCA's new Consumer Duty. In this episode they explore:

• what is the new Consumer Duty and how does it differ from current regulation?
• why is the Consumer Duty causing such consternation in the industry?
• what retail financial services firms need to think about next

*This episode was recorded before the publication of the FCA’s new rules on 27 July 2022.