TISA comments on the City of London minister’s critique of The Consumer Duty
Lisa Laybourn, Head of Technical Policy at TISA, said: “The aim of Consumer Duty is to put UK consumers, including the most vulnerable, in the strongest possible position to take charge of their financial wellbeing. This is an admirable ambition, and one which TISA supports. However, as with all regulatory change, the devil is in the detail.
“Many within already highly regulated industries such as the investment sector have justified questions about additional steps they need to take before the Duty is fully enforced. Further governance checks and evidencing of existing compliance are vital, but they must look beyond this.
“Better communication with customers is one key example. For communication to be effective in increasing consumer engagement, it needs to be delivered in a way that they will understand.
“Identifying other areas of improvement will take time. Firms need to review many aspects of their offering and then consider changes in their procedures. We understand this is a challenging ask to complete within the implementation timeframe.
“The Consumer Duty is a worthwhile initiative that will refocus providers on the needs of the consumer, and many firms have already made significant process in operationalising the Duty. But it requires detailed guidance and support from regulators in the implementation phase, as well as time and effort from providers.
“It is our hope that the City minister’s reported comments spur further conversations between firms, Government and regulators on prioritising consumer-friendly measures as part of the Duty’s implementation process.”