"These are likely to be big and bold changes, which won’t be cheap to implement, and will certainly require senior management to get a firm hand on the tiller in terms of making their firms compliant."
The Consumer Duty is relevant to all advisory firms, and the Paradigm film contains a review of the proposals and information on what the new rules might cost to implement as well as the groundwork firms can already start to put in place to deal with the changes.
The regulator’s second consultation on its Consumer Duty proposals ‘to set a higher standard of consumer protection in retail financial markets’ comes to an end on the 15th February, and the FCA has stated it wants full implementation of the new rules by the end of April 2023.
In this ‘Paradigm On Film’ episode entitled, ‘Consumer Duty – Part Two’, Paradigm’s head of compliance, Graeme Stewart, talks to mortgages technical director, Christine Newell, and head of protection, Mike Allison, about the revised proposals, specifically the new cross-cutting rules and the four outcomes the paper is now focused on.
There is also a discussion on what this might mean for individual firm culture, how it moves on from the Senior Managers & Certification Regime and principles such as Treating Customers Fairly (TCF), how it might work in practice in terms of ongoing compliance and documenting that compliance, and a number of hints and tips on the ways and means by which firms can prepare.
The film is available to view at: https://www.paradigm.co.uk/compliance/paradigm-on-film?Link=671960851.
Bob Hunt, CEO at Paradigm Mortgage Services, commented: “The consultation period set out by the FCA for this latest Consumer Duty paper is almost up, and following this, we will see the publication of the final rules, with the regulator anticipating full implementation of those rules by the end of April next year. In the grand scheme of things, that is not so far away, and this Paradigm film provides plenty of insight and information, as well as detail on where to find extra support, to make sure all advisory firms are well prepared for what is coming.
“These are likely to be big and bold changes, which won’t be cheap to implement, and will certainly require senior management to get a firm hand on the tiller in terms of making their firms compliant. Firms will need to ensure all members of staff have bought into the new requirements and understand what they mean.
“Watching this Paradigm film will provide plenty of food for thought for advisory firms and we believe it will help with their thinking, decisions and actions concerning compliance with the Consumer Duty rules. In terms of timeline, Consumer Duty is one of the biggest regulatory changes since the MMR and of course builds upon good TCF policy, but it is worth remembering that MMR and MCCB were predominantly rule-based changes, whereas Consumer Duty is predominantly a cultural change.”