Two thirds of banks and building societies are not yet Consumer Duty compliant, according to research from Moneyhub.
The research reveals that 87% of senior decision makers at banks and building societies said the new regulation would have a significant impact on the way they do business, while two in 10 (22%) do not think they will become Consumer Duty compliant before April.
Concerningly, 11% of senior decision makers said they didn’t know anything about the new regulations, with 4% only informed through the interview itself.
Samantha Seaton, CEO of Moneyhub said: “Consumer Duty is so much more than a box ticking exercise.
“Inflation, ease of accessing credit, rocketing cost of borrowing, and our move towards a cashless society all have a massive impact on the financial resilience of people.
“Finances for most are incredibly confusing and stressful. Most of us no longer physically interact with money, which is also adding to the confusion and stress about managing money.
“With Consumer Duty the responsibility shifts from the consumer to us, the financial services industry, and in particular the product providers.
“When it comes to consumers’ finances, we as an industry are in a position of strength because we do know how money works, however we will only get this right if we have an aggregate view of the customer.”
The FCA’s new regulations are to ensure that customers receive communications from financial services firms that they understand and are being offered products that meet the individual’s need at the point of sale and throughout the entire product lifecycle, offering fair value and providing support when they need it.
Importantly for FCA regulated companies, these regulations will eventually affect firms’ current book of business rather than just new business.
This in itself will prompt a re-evaluation of products that current customers are on and whether they are still appropriate.
