Compliance Q&A part 4: How do the review findings relate to the Consumer Duty?
Recordusure’s Chief Product and Commercial Officer Garry Evans catches up with TCC’s regulatory expert and Technical Director David Boyhan to discuss the FCA’s release of its findings into its recent ongoing advice review.
David specialises in wealth management and helps us unpack what firms should know about the latest FCA’s publications regarding ongoing advice services.
In the fourth instalment of the five-part mini-series, Garry asks David how the review’s findings relate to the Consumer Duty. Watch part four now to learn more or read the transcript below.
Watch part four:
Garry
Now David, the Consumer Duty has been all that is talked about over the past two years, as a main focus of the FCA. How do you think the findings of this ongoing advice review feed into that broader picture of Consumer Duty compliance?
David
I think it’s very important Garry and in reality, ongoing advice reviews are going to form a key part of a firm’s Consumer Duty management information, which will feed into the annual board report.
The FCA has confirmed it will be going out and contacting firms later this year to see what progress they’ve made in relation to ongoing advice services. So it’s vitally important that firms have the evidence to demonstrate any findings that they show to the FCA. I think it’s fair to say that if the FCA came knocking on your door in six months’ time, you would need to show that you’ve done work in relation to ongoing advice. You’d need to have MI going back to 2018 and you need to provide data in relation to redress that has maybe not been paid to clients and an explanation as to why that is.
But this really feeds back into what TCC has been talking about for numerous years as the FCA has become a data led regulator. We always encourage firms to have important MI backed up with evidence to demonstrate that customers are being treated fairly and receiving good outcomes. In summary, the work that firms do in relation to ongoing advice is crucial in demonstrating Consumer Duty compliance.
Garry
Thank you.
Watch the full Compliance Q&A video:
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