Quietroom has developed a consumer duty audit for FCA regulated firms
The consumer duty will change how regulated companies conduct business as the new rules become embedded in product development and will change how companies communicate with customers. In a speech, delivered on 10th May 2023, Sheldon Mills, executive director of consumers and competition at the FCA, warned that firms who ignore the duty or who pose the most harm can expect swift action from the regulator. Mills said that “The duty will mean that consumers should receive communications they can understand, products and services that meet their needs and offer fair value, and they get the customer support they need, when they need it.”
Robin Harries, consultant at Quietroom, said: “The consumer duty will change the way that regulated companies think about and interact with their customers. It’s a big step up for all firms and understanding the impact of how you communicate with customers is a central element of getting this right.
“Based on our experience, we’ve developed and piloted a strategic comms audit that will help firms meet their regulatory requirements and can be tailored to suit their needs. The consumer duty rules could mean significant changes to firms’ process and approach to communications.
“Getting ahead of the curve and ensuring firms are compliant and embedding new processes will be key to meeting the FCA’s high expectations.”
How it works
Quietroom experts have developed a four stage audit to help FCA regulated firms understand and meet their consumer duty needs.
It is based on a framework that compares firms’ communications to the consumer duty guidelines, drawing on the specific examples of effective communication that the guidelines offer.
It also covers key improvements the FCA wants to see, such as better communication with vulnerable audiences.
The audit can be tailored to a company’s specific needs. There is also a stage that allows firms to learn from the process that Quietroom has developed so they can run the bulk of the audit themselves.
The service includes a full audit report for every document checked, including a RAG (traffic light) rating and a summary of recommendations and feeds back on the main trends identified from across the audited documents, covering areas where companies are doing well and where they could be at risk of not meeting the new duty.
