Consumer Duty – Best practices for implementation and ongoing monitoring

So, what are the 'best practices'?

This list includes several examples of ‘best practices’ that we’ve identified from our reviews to date:

• Appointing a Duty ‘board champion’ - this helps ensure a greater focus on the end customer at board level.
• Provision of training (including both Consumer Duty and Vulnerable Customers) across all levels – this may take a different form for different roles within the business (i.e. those in customer facing roles, and those responsible for governing the Duty implementation).
• Documenting the ‘customer journey’ - specifically including any key stress points
• Adopting an approach of continuous improvement including constant review of data and metrics to better understand customers and ‘customer outcomes’.
• Ensuring Root Cause Analysis is performed on customer complaints.
• Ensuring the policy for identifying and treatment of vulnerable customers is clearly documented. Vulnerable customers should also be appropriately recorded to avoid the need for customers to repeat vulnerabilities and to ensure they get the support needed throughout their customer journey.
• Implementing strategies to ensure the same level of support is offered to new customers and existing customers.
• Placing emphasis on creating a culture which embraces openness including cross-team communication and an environment in which more junior members are able to challenge management and feel comfortable in raising issues.
• Developing a stringent and rigorous approach to product documentation and marketing materials to ensure product features and potential risks are transparently and fairly communicated.
• Clearly evidencing and documenting compliance with the Duty through compliance monitoring plans and formal reporting to the board.

This is by no means an exhaustive list but a selection of good practices based on our experience, and offers a positive step towards effectively managing the Duty expectations on an ongoing basis.

How can we help?

Following the introduction of the Duty and in response to the FCA’s call for independent assurance, we’ve supported many businesses with our bespoke advisory service to help with implementation and ongoing monitoring.

Our approach can be tailored to your requirements but typically covers the following elements:

• Culture and governance (including board oversight)
• Internal policies and procedures
• Implementation strategy
• Processes in place for ongoing assessment, testing and evidencing of outcomes
• Demonstration of compliance

If you need support regarding the implementation of the Duty and ongoing monitoring, or would benefit from an independent review, please get in touch.