Summary
What this article covers in 30 seconds
- The FCA saw plans suggesting some firms may have considered the requirements superficially or are over-confident that existing policies and processes will be adequate.
- Resource investment alone won’t provide the level of oversight needed to monitor and evidence good consumer outcomes consistently.
- The FCA noted firms that identified resource shortfalls early, especially in technology, and others investing sensibly in support and advice from external experts.
- Conversation Intelligence increases QA oversight to 100%, ensures consistent QA reviews and evidences QA outcomes, while its in-built MI supports a long-term data strategy.
- The FCA plans surveys of a sample of firms and targeted engagement with smaller firms to gauge their progress on Duty implementation.
Last October, FCA regulated firms were busy preparing for the first step on their Consumer Duty journey ahead of the Halloween deadline for implementation plans.
Fast-forward three months, and the regulator has now provided its first in-depth analysis of some larger ‘fixed’ firms’ plans, in turn giving a clearer picture of its expectations through key findings.
So, how does this snapshot help your firm implement positive, Duty-focused change? Well, a key area the FCA noted was:
“We saw some plans that suggested firms may have considered the requirements superficially or are over-confident that their existing policies and processes will be adequate.”
Therefore, this short but significant window of time before the 31st of July 2023 can be used to consider whether you have given enough in-depth thought to how you will monitor and evidence good consumer outcomes – and if you’re not planning on utilising RegTech to support this, then ask yourself why not.
Deliverability through tech
With the upcoming implementation deadline, firms are realising that embedding the Consumer Duty and monitoring its outcomes is no mean feat, and that resource investment alone isn’t going to provide the level of oversight required to monitor and evidence good consumer outcomes consistently. In its multi-firm review, the FCA did note some effective ways firms can go about this:
“We noted examples where firms have identified early, and in detail, any resource shortfalls for timely implementation – especially in areas like technology – and have a commitment and plan to address this. Some firms are investing sensibly in support and advice from external experts where this assists and adds value.”
This follows the ‘Zeroes to Heroes’ speech from FCA Chief Operating Officer and Executive Director Emily Shepperd, which detailed how fostering an innovative culture and embracing AI solutions could hold the key to efficiently and intelligently analysing the reams of data firms have at their disposal.
Utilising AI
And that’s where Recordsure’s Conversation Intelligence can help. This unique solution is founded on intelligent speech analytics to provide enhanced Quality Assurance (QA) in regulated industries. Our proprietary AI models are proven to increase the efficiency and effectiveness of QA teams, ensure consistent QA reviews and evidence QA outcomes while increasing QA oversight to 100%.
With a wealth of in-built MI, Conversation Intelligence can also form a fundamental part of your firm’s long-term data strategy – another thing the FCA has noted as good practice in its review.
Next steps
The FCA has been clear in its latest communication that it’ll be keeping a close eye on firms’ Duty implementation in the coming months – with planned surveys for a sample of firms to gauge the progress they’re making, along with targeted engagement with smaller firms.
With this in mind, if you haven’t yet considered how RegTech can help you monitor and evidence consumer outcomes, now’s the ideal time to adopt a tech solution that will help propel your firm to Duty success.
Frequently asked questions
It saw some plans suggesting firms may have considered the requirements superficially or are over-confident that their existing policies and processes will be adequate. It also noted good practice, such as identifying resource shortfalls early – especially in technology – with a commitment and plan to address them.
No. Firms are realising that resource investment alone isn’t going to provide the level of oversight required to monitor and evidence good consumer outcomes consistently.
Founded on intelligent speech analytics, it increases QA oversight to 100%, ensures consistent QA reviews and evidences QA outcomes. Its in-built MI can also form a fundamental part of a firm’s long-term data strategy, which the FCA has noted as good practice.
It will keep a close eye on firms’ implementation in the coming months, with planned surveys for a sample of firms to gauge their progress, along with targeted engagement with smaller firms.