Newsletter - A Merry Christmas and a Happy New Year to all!

There’s been no let-up in activity in 2024 and we’re ending it with a real sprint finish. This will continue into 2025 which, in my view, will further elevate the benefits and value of professional financial advice!

The FCA has published some important updates on its focus for 2025 and the Alliance is on the case to support the profession through the sharing of practitioner experience, expert input and the sharing of good practice, coupled with new resources available to all.

FCA reports: Consumer Duty good and poor practice

The FCA published two more Consumer Duty reports on good practice and where firms could do better to help firms embed the Duty and provide more clarity on their expectations:

• Consumer Duty Board reports - findings from a review of 180 firms’ approaches to completing the first annual Consumer Duty Board report.
• Complaints and root cause analysis – FCA findings from reviewing how 40 firms approached their complaints and root cause analysis.

These findings highlight good and poor practice on how firms track consumer outcomes, act on insight, and enable senior management to challenge and drive improvements, if needed, to deliver the Duty.

Of course, firms must find their own approach to embedding the Duty, based on size, activities, resources, etc and these reports aim to provide extra insight to help this process.

FCA’s Consumer Duty focus areas

Following sector feedback, the FCA also published their Consumer Duty focus areas, setting out their priorities under the Duty for the next 12 months.

This webpage provides a short description and expected timelines for the FCA’s ongoing and planned Duty workstreams, which they will keep under review and update as needed.

Advice Guidance Boundary Review - Proposed targeted support reforms for pensions

In November the FCA published an update on their proposals for closing the advice gap. It included their plans for further consultation, beginning with high-level proposals for targeted support for pension savers.

In December they published these proposals for a new type of consumer pension support, called targeted support. The consultation period closes on Thursday 13 February 2025 and you can provide your feedback using the online response form or by emailing: cp24-27@fca.org.uk.

Alliance webinar: How to effectively monitor and evidence consumer outcomes

Consumer Duty requires firms to monitor the quality of the outcomes their clients receive. 

Over 500 people registered for this webinar looking at how to establish a proportionate framework to test and review this for all the Duty’s outcomes, and other key areas such as vulnerability? Watch the recording here.

Looking ahead to 2025

2024 has been a busy and productive year with much for the sector to be proud of. The Alliance will continue to help firms deliver their Consumer Duty requirements and is building on 2024 activity with some new initiatives for 2025:

• In-person events – a new series of regional events on a variety of topics with some FCA participation
• Online community – with access to exclusive resources for members. 

If you’re not an Alliance member, it’s quick, easy and free to join as an individual, a firm or both – visit this page to see how.

To be recognised as a true profession - united we evolve!

Very best wishes,

Keith Richards, CEO, Consumer Duty Alliance and Chairman, Financial Vulnerability Taskforce

PS: A special Thanks to our Foundation Affiliates L&G, Howden and Just.

Under Consumer Duty, firms need to be able to monitor the quality of the outcomes their customers are receiving. However, it can be challenging to put in place a proportionate framework to test and review this for each of the Duty’s outcomes, as well as in other key areas like vulnerability.

Over 500 people registered for this Consumer Duty Alliance Champions’ Forum where members of the Association of Professional Compliance Consultants discussed the practical steps firms can take to ensure they have the right framework in place to monitor outcomes effectively.

The panel of industry experts from across key sectors produced an insightful discussion with a focus on practical actions including:

• Monitoring and MI fundamentals
• Lessons from recent FCA supervision findings

Watch the recording here

This new tool helps firms of all sizes assess, quantify and easily report on their client-centric readiness and compliance status, and identify sustainable business growth opportunities.

Developed by the Consumer Duty Diagnostic, in partnership with the Alliance, it’s free to use, takes just 10 minutes to complete and enables firms to assess themselves against the Duty’s four outcomes and key factors such as culture and client advocacy.

Upon completion, users immediately receive a personalised report recommending appropriate actions to meet Consumer Duty requirements and explore new commercial growth opportunities.

Get your free diagnostic tool.

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