The introduction of the Consumer Duty by the Financial Conduct Authority (FCA) represents a significant shift in the financial services industry. This regulatory change requires firms to act in the best interests of their retail customers, placing consumer outcomes at the heart of business decisions. In this context, the role of the Consumer Duty Champion has emerged as a pivotal position within firms, tasked with ensuring that the principles of Consumer Duty are embedded at all levels of the organisation.
The FCA has made it clear that the primary role of the Consumer Duty Champion is to support the Chair and CEO by raising the Consumer Duty in all relevant discussions and challenging the firm’s governing body and management on how effectively the Duty is being embedded. While the Champion’s role is not a prescribed responsibility under the Senior Managers & Certification Regime, it is crucial that the board and senior management retain overall collective responsibility for the Consumer Duty.
In larger organisations, the Champion should ideally be an independent non-executive director at the board level, ensuring that the Consumer Duty is discussed in a meaningful and impactful way. In smaller companies, where resources may be limited, the Chair of the board may assume this role, overlapping responsibilities as needed. Regardless of the organisation’s size, the Champion must have a voice that carries weight within the firm, able to secure confirmations and shape agendas that prioritise consumer outcomes.
As firms begin to operationalise the Consumer Duty, the Champion will play a critical role in ensuring that the Duty is a standing agenda item at all key governance forums. This may involve holding longer or more frequent meetings to thoroughly challenge and debate strategic decisions that impact customer outcomes. By asking board members and senior managers to provide regular written confirmations that they are focusing on customer outcomes, the Champion can gain further assurance that the firm is meeting its regulatory requirements.
Recognising the complexities and demands of the Consumer Duty, TURN has partnered with CXCO and Investors in Customers to offer a comprehensive suite of solutions designed to support firms in meeting these new regulatory standards. Our product offerings include the Distributor Feedback Template (DFT) and Customer Outcome Monitoring.
The Distributor Feedback Template facilitates seamless data sharing between distributors and manufacturers, ensuring that all parties in the distribution chain are aligned with Consumer Duty requirements. This template is designed to enhance transparency and consistency, providing a robust framework for feedback and data exchange.
The Customer Outcome Monitoring tool offers real-time insights into consumer experiences, enabling firms to identify potential risks and take proactive measures to enhance customer satisfaction. This comprehensive approach ensures that firms can effectively monitor and improve consumer outcomes, meeting the FCA’s expectations and beyond.
Our partnership with CXCO and Investors in Customers brings together industry-leading expertise in data management, customer engagement, and regulatory compliance. Together, we are committed to helping firms not only comply with the Consumer Duty but to excel in delivering exceptional outcomes for their customers.
If your firm is navigating the challenges of Consumer Duty, we invite you to get in touch with us. Learn more about how TURN, CXCO, and Investors in Customers can support your journey. Follow us on LinkedIn and stay connected for the latest insights, updates, and offerings. Let’s work together to elevate standards and create a more transparent, customer-centric financial services industry.
