TMA Club has revealed the most common questions its Broker Support Desk gas assisted directly authorised (DA) brokers with ahead of the Consumer Duty deadline in July.
The most frequently asked questions related to: the scope of Consumer Duty, the vocabulary used by the Financial Conduct Authority (FCA), and considerations that firms should prioritise.
TMA Club saw a sustained focus on queries relating to who, and what, the FCA’s new guidelines will apply to.
In particular, brokers were keen to understand whether Consumer Duty would apply to all the products and services that they sell.
The guidelines apply to all regulated products except group policies; for example, it would not apply to an unregulated investment buy-to-let (BTL) mortgage, but would apply to a consumer BTL mortgage.
Other brokers enquired whether Consumer Duty applied to them, even when they did not offer advice.
The guidelines still apply in this instance, but the brokers in question must ensure that all the information they give to a customer is clear and in plain English.
By doing so, they ensure clients understand exactly what they are being offered and make an effective and informed decision.
According to TMA Club, the priority for brokers was assessing what they currently do, and how they need to change to meet the four customer outcomes: products and services, price and value, consumer understanding and customer support.
However, the club said brokers should also consider the three cross-cutting rules as well as the new conduct rule, that will apply to firms and their staff or advisers.
Consumer Duty rules now also take account of how firms support customers with vulnerable characteristics.
Firms should be able to identify which customers are vulnerable, and what actions they have taken to support them – as well as those who are not.
Full explanations and expectations are shown in the various sections in non-Handbook Guidance.
Lisa Martin (pictured), development director at TMA Club, said: “With the Consumer Duty deadline fast approaching for advisers, brokers across the board are working hard to make sure they will be able to meet the requirements laid out in the guidelines.
“TMA Club is committed to ensuring our broker members understand, and adapt to the FCA’s regulations – something which will ultimately help the end-consumer.”
She added: “Particularly in a market where independent advice is more important than ever, TMA Club is providing crucial compliance support to advisers, who in turn can spend more time helping their customers navigate this complex environment.”
