KPMG responds to the FCA’s Consumer Duty rules

Responding to the FCA’s Consumer Duty rules, David Miller, Partner at KPMG UK, said “The most welcome news for firms is that the FCA has listened to feedback on the proposed timeline. The FCA is now giving firms 12 months to implement its requirements. It has also further agreed that closed products will have an additional 12 months to allow firms sufficient time to implement all required changes.

“This is a pragmatic approach by the FCA which is still intent on introducing its ‘step change’ as soon as possible but recognises the additional complexity and challenges of applying the duty to closed products.

“Whilst the new timescales will give some welcome relief, the deadline for current products still remains challenging and firms will be ramping up their preparations. It is interesting that the FCA have ensured that there will need to be focus on this immediately by expecting boards to have scrutinised and agreed implementation plans by October 2022, to ensure they are deliverable and robust.

“The FCA has also provided additional clarification on the regulator’s expectations with examples and guidance relating to key challenging topics such as how to apply the duty’s scope to different types of customer, relationships between manufacturers and distributors, the role of the board, and developing a fair value framework. This additional clarification will help to remove some of the uncertainty firms are experiencing and will help them accelerate their implementation plans.”

ENDS

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Gerard Swinley

Gerard.swinley@kpmg.co.uk