“The delivery of the Consumer Duty obligations is not one point in time but a process of continuous improvement”
Nadege Genetay, Partner, Sicsic Advisory

With the implementation deadline for Consumer Duty in around two months, now is the time to consider where your firm is in the Consumer Duty journey.
Have you reviewed your plan and made sure that changes are agreed upon and you have a clear plan for implementing them? Do you have a clear plan, not just for the end of July but beyond? Have you shared information with other parts of your distribution chain? Are the changes that you have implemented the right ones – rather than the easy ones? While Consumer Duty implementation is entering its final phase the work is still far from over.
Sicsic Advisory is in a unique position to give you support on your Consumer Duty. We have helped a dozen firms with their implementation of Consumer Duty and have developed a unique understanding of the problems firms face. Contact us today to find out how we can support you on your Consumer Duty journey.

A significant shift in culture and behaviour
The new Consumer Duty is “a significant shift in culture and behaviour” in the FCA’s words. The Duty asks firms to think for themselves what are good outcomes for customers in the context of their specific business model; this is not about compliance with specific rules, but very much about strategy, business model, and culture.
While it includes familiar concepts such as a customer-centric approach, clear communication, responsibility through the distribution chain, and assessment of fair value, it differentiates itself by having a broader scope and the anticipated intensity of monitoring and supervision.

Outcome-based regulation
The new Consumer Duty aims to stop practices that stand in the way of good customer outcomes such as exploiting behavioural biases through sludge practices. It also requires firms to be proactive in delivering good customer outcomes and avoiding causing foreseeable harm. As the FCA put it: “getting it right in the first place”.
In line with this comes the mindset shift towards outcomes-based regulation with the FCA wanting firms to focus less on meeting the letter of the rules and more on the outcomes for customers, no more “narrow compliance and [more] focus on delivering good outcomes”.
Key dates
By the end of October 2022, a Consumer Duty implementation plan should have been approved by boards, and manufacturers should have reviewed outcomes for open products by the end of April 2023 (April 2024 for closed products) to give them time to communicate with third parties, and remedy poor outcomes. The new rules come into force at the end of July 2023 with Boards expected to confirm their compliance with them. From the end of July 2024, Boards should review an annual report on Consumer Duty.

Key questions to ask yourself
What are you going to tell your board come July?
If the Financial Conduct Authority (FCA) comes knocking at your door, how confident are you that you will measure up to the regulator’s high expectations?
Now that you have designed your Consumer Duty framework, what assurance do you need, and when, on its implementation and embeddedness within your firm?
If you are unsure about any one of these questions, get in touch and see how Sicsic Advisory can support you.
Explore more on Consumer Duty here
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