Tech helps to meet FCA Consumer Duty standards

Consumer Duty is a significant regulatory shift, with many firms working continuously to ensure that they meet the new higher standards.

A recent FCA firm survey found most firms believe they are on course and/or meet the implementation of the Duty. However, some still fall short even though the deadline has passed.

The FCA issued a range of questions prior to the launch on 31st July, and it is advised to revisit these 10 questions to help gain confidence when meeting Duty regulations. If there are concerns that the firm is falling short on those questions, it could be related to consumer communication and reporting. Technology could be the answer and key for helping navigate through Consumer Duty.

WHY?

Consumer Duty is centred towards advisors monitoring and documenting client interactions so there is clear evidence of demonstrated compliance ensuring good consumer outcomes. There is further focus on the advisors recognising and understanding which customers are vulnerable – or at risk of becoming vulnerable.

Therefore, the quantitative data requested through surveys, questionnaires and complaints for example are no longer as sufficient as they once were. There is a need for the addition of strong qualitative data that can only be captured via a substantial Customer Relationship Management system (CRM).

HOW TECH CAN HELP

Consumer Duty regulations require a whole new level of customer communication and are predominantly outcome-focused. Outcomes tend to only arise after, so documenting clearly and effectively is vital when demonstrating steps throughout the client-adviser relationship.

Technology comes into its element here as a solid CRM can sit at the heart of most firms and navigate compliance efforts. CRMs can provide the data required by the FCA via dashboards and documents in a sufficient quality manner with important insights and proof of remediations/action points. Furthermore, and most importantly, CRMs can automate workflows to allow advisors to focus on what matters – consumer outcomes.

CONCLUSION

As we navigate the evolving landscape of financial regulations, the FCA’s Consumer Duty standards represent a fundamental transformation in the way consumer interactions and accountability are handled within the industry. The need for a comprehensive solution becomes paramount. ArchAngel Software, with its cutting-edge Customer Relationship Management (CRM) system, emerges as the guiding light for PMI brokers and financial firms.

Consumer Duty places a significant emphasis on advisors’ abilities to communicate effectively with their clients, ensuring clear understanding and demonstrating compliance for good consumer outcomes. It’s a complex task that goes beyond traditional data collection methods. ArchAngel’s software takes this challenge in its stride. It not only simplifies data storage and automates vital processes but also enables the user to log vulnerable clients. This is a crucial aspect of the duty, considering the emphasis on consumer well-being and protection.

What sets ArchAngel apart is its proactive approach. By empowering advisors to proactively support clients in pursuing their financial objectives and by helping firms implement robust processes and procedures to avoid potential harm, the software demonstrates a commitment to regulatory compliance and more importantly, to the welfare of clients.

ArchAngel gives the user the ability to provide the FCA with the data they need competently and effortlessly, supported by valuable insights and clear evidence of remediation efforts. It bridges the gap between regulatory compliance and exceptional client outcomes, offering a streamlined, efficient, and transparent way for advisors to focus on what truly matters – the well-being and success of their clients.

In the era of Consumer Duty, firms need to show that they are being proactive and not just meeting regulation requirements but looking to exceed them, ultimately delivering a higher level of care and satisfaction to clients.