Consumer Duty - Health Check

Deliver good outcomes for retail customers under FCA principle 12, including SMEs, by considering products and services, price and value, and consumer understanding and support.

Learn the three cross-cutting rules of consumer duty: act in good faith, avoid foreseeable harm, and enable customers to pursue their financial objectives, mindful of vulnerabilities and expectations.

Identify and implement the four consumer duty outcomes—product and services, price and value, consumer understanding, and consumer support—through governance, fair value assessments, and transparent communications.

Discover how a robust consumer duty health check framework helps the CEO and the consumer duty champion evidence ongoing compliance to the board and FCA, and prepare the annual report.

Outline the consumer duty health check framework across four dimensions—product governance, lead generation, lead conversion, and customer fulfilment—and map them to the four consumer duty outcomes.

Assure the quality of your products and services to meet consumer duty requirements by establishing product governance arrangements. Identify the target market, choose distribution channels, and monitor performance.

Explore quality assurance questions for consumer duty products and services: target market, design to meet needs, and risks to vulnerable customers, with governance and evidence for annual consumer duty report.

Evaluate quality assurance for the consumer duty products and services outcome by addressing vulnerability risks, ensuring information sharing with distribution chain, and monitoring distribution through product governance and periodic reviews.

Learn to monitor consumer duty products and services with data and MRI, conduct regular reviews, assess withdrawals and mitigation, and document decisions via the Product Governance Committee for annual attestation.

Ensure price and value compliance for in-scope businesses under the consumer duty health check framework by conducting a fair value assessment weighing costs, benefits, distribution strategy, and vulnerable customers.

Assess fair value of pricing by evaluating relevant data, gathering distribution chain information, and benchmarking against similar products to ensure price reflects benefits and life cycle costs.

Review how to assess price and value for consumer duty, focusing on questions four to six, ensuring fair value for older products and vulnerable customer groups, with annual reporting.

Engage in quality assurance by assessing fair value with ongoing data and MRIs, implement corrective actions via the Product Governance Committee, and track outcomes to support annual consumer duty attestation.

Learn to assure the quality of consumer understanding across the customer journey with a ten-question framework to provide right information at the right time for informed decisions and attestation evidence.

Apply the same standards and testing capabilities to communications to deliver good customer outcomes for the consumer understanding outcome, testing effectiveness across the journey with surveys and engagement metrics.

Learn how to act on testing results to improve customer communications. Build evidence by testing messages for customers with vulnerability, measure effectiveness, and support the annual consumer duty attestation.

Learn to ensure consistent, effective customer communications across channels, test them regularly, monitor impact with data and mri or feedback, and document the evidence for the annual consumer duty attestation.

Learn to assure the quality of consumer support under the consumer duty framework by applying the health check, answering nine questions, gathering evidence, and taking remedial action.

Assess and improve consumer support quality by setting lifecycle-based targets across channels, testing outcomes, and addressing vulnerability, with templates and annual reporting under the consumer duty.

Develop evidence to support assessment of consumer support outcomes by analyzing data and customer feedback on vulnerability, ease of switch, and post-sale quality versus pre-sale, informing annual reporting.

Learn how to use data and feedback to monitor consumer support outcomes, set monitoring frequency, oversee outsourced providers with service-level agreements, and support consumer duty board attestation and annual report.

Apply the consumer duty health check to closed book products and services, meet timelines for board reports, and demonstrate ongoing outcomes in line with the four consumer duty outcomes.

Review and assess closed products under the FCA consumer duty by 31st July 2024. Build a closed product inventory, perform fair value assessments, and engage customers to prevent harm.

Assess your closed products against fair value and customer outcomes, then decide to continue, amend, or terminate and migrate before the FCA consumer duty deadline, applying proportionality.

Explore the consumer duty health check framework to ensure compliance with new regulations, turn compliance into a competitive advantage, and document attestation and annual reports for boards.