With the implementation deadline of 31 July, 2024 fast approaching, firms should be looking to complete their first annual Governing Body Report under the FCA’s Consumer Duty rules. Boards should be satisfied that their firms have prepared adequately, and have agreed methodology and process for continually reviewing all their products and services going forwards. 

There is a lot for businesses to consider, as penalties will be high for those not complying with the new rules. 

How can we help you prepare?

Support in designing the structure of the Report and external challenge on its contents

We can work with you to design a structure for the Board Report to accommodate the necessary coverage so as to meet FCA requirements and guidance, and to facilitate effective challenge and proper approval by the Board, as well as determine necessary actions arising for the firm on a forward-looking basis. 

Drawing on our extensive experience supporting firms and their boards with implementation of the Duty, we can provide practical guidance to governing bodies on their approach to review and approval.

We can provide external challenge of the content and conclusions of the draft Report, as it is prepared and ahead of circulation to senior stakeholders; drawing on our experience and our support to clients in establishing effective MI frameworks and overall governance.

Forward-looking statements and Duty compatibility

We can review and provide challenge in respect of the forward-looking statements within your Board report on how your business plan is compatible with the Consumer Duty.

We can also provide a more holistic review of your business to identify those areas that may be more susceptible to challenge from the FCA. We can work with you to identify practical improvements to help the Firm deliver good outcomes for retail customers, whether they are direct or indirect clients across a distribution chain.

Updating key regulatory documentation

The outcome of the Board Certification exercise may require adjustments to products and services from a forward-looking perspective and/or the way they are provided to customers; or to the overall business of the Firm. 

We can support the Firm on amendments to key regulatory documentation, including the Firm’s Regulatory Business Plan and Statement of Responsibilities for Senior Managers.

Remediation of identified customer harms

To the extent that foreseeable customer harms have been identified, firms will need to comply with new DISP provisions; requiring prompt investigation and (amongst other things) identify the redress and remediation required to be provided to the retail customer(s).

Our wide-ranging experience of supporting firms in designing and delivering remediation to customers in the retail sector, combines legal, risk and compliance advisory support as well as operational capacity.

Migration of customers to your new product / service lines

For firms implementing of the Board Certification at the same time as implementation of the Duty for closed products and services, we can provide you with legal support on key challenges, including assessments of ‘vested rights’, contractual terms, customer harm assessments and practical support to mitigate actual or potential harms through variations or migration projects.

We can also provide you with legal support on key challenges relating to the creation, or closure, of new product / service lines.

Support with FCA engagement, including information requests and supervisory interaction and challenge

We can support you during your engagements with the FCA, considering the use by the FCA of its section 165 power to require information from firms to support its supervisory and enforcement functions. The FCA is now actively supervising against Duty requirements; and it is important that firms anticipate the direction of travel as the FCA learns more from firm engagement across sectors. 

Our experience supporting firms across retail markets supports our engagement with firms to meet the regulator’s expectations in individual sectors, leveraging experience from advisory and contentious mandates.
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The FCA’s new Consumer Duty: Is your firm ready?

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作者

Jonathan Herbst
Jonathan Herbst
Global Head of Financial Services
Email
jonathan.herbst@nortonrosefulbright.com
T: +44 (20) 74443166
Matthew Gregory
Matthew Gregory
Partner
Email
matthew.gregory@nortonrosefulbright.com
T: +44 (20) 74442467
Katie Stephen
Katie Stephen
Co-Head of the Contentious Financial Services Group, London
Email
katie.stephen@nortonrosefulbright.com
T: +44 (20) 74442431
Joe Bamford
Joe Bamford
Senior Associate
Email
joe.bamford@nortonrosefulbright.com
T: +44 20 7444 2140
Haney Saadah
Haney Saadah
Managing Director of Risk Advisory, EMEA
Email
haney.saadah@nortonrosefulbright.com
T: +44 (20) 74442519
Hishaam Khan
Hishaam Khan
Associate
Email
hishaam.khan2@nortonrosefulbright.com
T: +44 (20) 74445843

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