FCA to hold webinar on new Consumer Duty
Posted on in Business News , Cycles News
The Financial Conduct Authority has confirmed plans to introduce a new Consumer Duty that will set higher and clearer standards of consumer protection across financial services and require firms to put their customers’ needs first.
The FCA will be hosting a webinar on 1 November at 14:00 for firms, trade associations, professional bodies, and compliance consultants working in the retail lending sector to clarify its expectations and help firms prepare for implementation.
During the session, the FCA will focus on the following areas:
- Its expectations for firms under the Consumer Duty and key milestones during the implementation period
- What outcomes-based regulation is
- What the Consumer Duty means for the retail lending sector
They will also take questions during the live webinar, or you may submit them as part of your registration
You can register for the webinar here: https://webinars.fca.org.uk/consumer-duty-webinar-retail/join
Additional Information
The FCA outlines that authorised businesses should "provide products and services that are designed to meet customers' needs, that provide fair value, and help customers achieve their financial objectives and which do not cause them harm."
Businesses authorised by the FCA can support consumers in pursuing their financial objectives by designing and offering products or services with clear and straight-forward features so they can be understood by consumers in the target market.
So, what does this mean?
Simply put, it means that products should be right for the customers you're selling them to.
The FCA requires authorised businesses:
- ensure that the design of the product or service meets the needs, characteristics, and objectives of customers in the identified target market
- ensure that the intended distribution strategy for the product or service is appropriate for the target market
- carry out regular reviews to ensure that the product or service continues to meet the needs, characteristics, and objectives of the target market
What does this mean for you?
As an authorised business, you are at the start of the purchase process with the customer, and it is important that you offer all customers the same available finance products. You should be confident that finance products are suitable for your customer demographic and that customers don't feel as though your proposed finance products are their only option of payment.
Check that you offer all customers the same products and that your products are suitable for those customers.
Finance Calculator
The Ride it away Finance Calculator lets you assess with your customer how their monthly finance payment can fit into their budget, which can be found here: https://www.rideitaway.co.uk/finance-calculator