The regulator does not expect all firms to be perfect, but they do expect an inward-looking challenge process driven by key data – one that follows an auditable work stream of changes and validation.
The need for evidence has become critical, which is why a lot of firms say they are likely to adopt regulatory technology to help them achieve this.
Industry solutions such as Model Office, in conjunction with expert compliance oversight, enables firms to identify, segment and rank data against the four consumer duty outcomes, with provision to validate and evidence adherence.
As we move through the coming months, we can expect these kinds of solutions to become increasingly popular as more firms look to evidence compliant practice and find ways to meet the regulatory requirements more easily.
So, what can firms expect in 2024 regarding consumer duty?
More and more data-driven challenges from the regulator, for sure.
The focal point for demonstrating compliance with the consumer duty will continue to be self-challenge and evidence, which means that having the mechanisms in place to collect, measure and act on data will be key.
John Higginbottom is head of regulatory propositions at Bankhall
