With that in mind, if a firm already has a mandatory internal reporting date – perhaps at the end or the beginning of the year – it may be good practice to consider tying their consumer duty reporting into that. It is not mandatory of course, but it would be good practice.
Taking the regulations seriously
There are still a small number of firms who may feel that they do not need to change their ways of working in line with their consumer duty obligations.
Some, for instance, might think that being smaller means they are safe from the duty. And while it may be true that the FCA will focus most of its attention on the largest players, the regulator has been very clear that there will be no exceptions made.
To put it simply, anyone who believes consumer duty is not being monitored or that they are not being monitored is sorely mistaken.
And while we have yet to hear of the FCA hauling a firm over the coals, it is sure to be only a matter of time before someone trips up and an example is made of them.
The firing of the starting pistol
We are just over three months in now and everyone is progressing with consumer duty at different speeds – just as we saw before its implementation. And for the most part, firms are well aware of the regulations and want to get it right. But to ensure they are getting it right and continually improving, data is key.
The regulator is expecting firms to build their banks of vulnerability data and learn and adapt based on this. And this that is where we are starting to see a growing gap between those that are doing well and those that are falling behind.
We have spoken before about how the FCA never meant for the July 31 to be treated as a finish line. And they have said it themselves too – it is not a “once and done” exercise. Rather the regulation is intended to be the firing of a starting pistol, marking just the start of a broader conversation on vulnerability.
Let’s be clear, the duty is now here and there is no time left to fall behind.
The FCA expects all firms (no matter what size they are) to be on board, and has made it clear that burying heads in the sand simply is not an option.
So to those who are already making progress – they should be commended. And to those who have yet to act or who are falling behind, do not delay. It is not too late to get your data in order.
Jonathan Barrett is chief executive of Comentis
