The latest Financial Lives survey, published by the Financial Conducts Authority (FCA), reveals the importance of the Consumer Duty (the Duty), which sets a higher standard of consumer protection.
The survey found that 7.4 million people unsuccessfully attempted to contact one or more of their financial services providers in the 12 months before May 2022, with the most vulnerable in society most likely to struggle with this.
Less than half of UK adults, or 21.9 million people, had confidence in the UK financial services industry and just 36% agreed that most financial firms are honest and transparent in the way they treat them. Although a more positive picture emerged when people were asked to rate their own provider rather than the sector in general.
The Duty comes into force on 31 July 2023 for all new and existing products and services. From this point firms will need to make sure, and be able to show, that they are acting to deliver good customer outcomes.
NFDA operates an informed and structured Finance & Insurance group, working closely with the FCA to equip businesses with the necessary tools for compliance. NFDA offers structured resources such as guidance documents, implementation plans, SWOT analysis, and GAP analysis to assist retailers in meeting the requirements of the Consumer Duty.
Motor retailers must adapt to the new regulations and make necessary changes to align with the Consumer Duty. Here are the key aspects motor retailers need to consider:
- Motor retailers must prioritize customer needs, ensuring their products and services align with customer expectations.
- Motor retailers need to reassure customers that the product they are buying is good value and at a fair price for them.
- Motor retailers must evidence that customers have free access to support before, during, and after their purchase.
For retailers seeking assistance or further discussions on the implementation of the Consumer Duty, please reach out to Symon.Cook@Rmif.co.uk or contact the NFDA member helpline at 01788 538303.