![\"FCA](\"https:\/\/solutionsreview.com\/data-management\/files\/2022\/12\/FCA-Consumer-Duty-Summary.jpg\")
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This is part of Solutions Review\u2019s Premium Content Series, a collection of contributed columns written by industry experts in maturing software categories. In this submission, MirrorWeb<\/a> Chief Operating Officer Harriet Christie offers an FCA Consumer Data Summary on the role of data archiving.<\/em><\/strong><\/p>\n This article will delve into how and why it has come into practice, the changes that have been made, who that affects, and how firms can remain compliant ahead of the imminent deadline and beyond.<\/p>\n Before we go any further, it\u2019s worth sharing the FCA\u2019s clarification<\/a> on the definition of some key terms, namely what a \u2018consumer\u2019 constitutes in their eyes. It\u2019s probably worthwhile given that it\u2019s what they\u2019ve named the Duty after.<\/p>\n The FCA generally uses the term \u2018consumer\u2019 when talking about the wider group of those who use financial services, and \u2018customer\u2019 when talking about an individual firm\u2019s customers or potential customers. However, \u2018both mean retail customers who are within the scope of the Duty\u2019. The term \u2018product\u2019 is used to refer to both products and services.<\/p>\n It\u2019s important to understand that the Consumer Duty is an entirely new set of standards, as opposed to a rehash of existing principles. The requirements are built on the foundation that financial services firms should be consumer-centric. This means that they should be focused on providing good outcomes for retail customers, particularly in the unforgiving (and increasingly digital) retail climate of 2022.<\/p>\n As the policy statement explains<\/a>, \u2018We want to see a higher level of consumer protection in retail financial markets, where firms compete vigorously in consumers\u2019 interests\u2026this is particularly important as consumers face increasing pressures, including those relating to the cost of living\u2019.<\/p>\n The rise of e-commerce<\/a> is another key consideration, and the Duty will have a clear impact on how firms manage their digital distribution channels, whether online or through an app. These channels include detailed real-time data on customers, while the digital architecture (the way in which choices and options are presented) is highly influential in affecting the customer\u2019s decision-making process. Thankfully, digital platforms also allow the ability to quickly alter said architecture, should the outcome be unsatisfactory.<\/p>\n Essentially the regime applies to:<\/p>\n The FCA has implemented four key factors for firms to focus on, which will lead to compliance with the overarching Consumer Principle; to provide good outcomes for retail clients. They are as follows:<\/p>\n While adherence won\u2019t be required before 31st July 23 (see notable dates below), firms can be asked to share their implementation plans from 31st October 2022.<\/p>\n While it may feel like there is still plenty of time to address these concerns before the Duty comes into action, the reality is that the process should be well underway.<\/p>\n The FCA\u2019s most recent update<\/a> explains, on the October 22 implementation plans, \u2018Firms must be able to show they have scrutinized and challenged these plans to ensure they are deliverable and robust to meet the new standards.<\/p>\n \u2018Firms should also consider any work needed with other parties to prepare for the Duty and ensure their plan allows enough time for this.\u2019<\/p>\n If the Consumer Duty plan has not yet been mapped out by your organisation, you have some catching up to do.<\/p>\n As detailed in the above update, the FCA \u2018wants firms\u2019 Boards and senior management to ensure that good outcomes for consumers are central to their firm\u2019s culture, strategy and business objectives.\u2019<\/p>\n Rather than simply ticking a new set of boxes, the FCA wants to transform the ethos of firms in the UK financial sector, so that good consumer outcomes occur more naturally, rather than through simply shoehorning regulations into the existing setup.<\/p>\n![\"SR](\"https:\/\/solutionsreview.com\/data-management\/files\/2021\/12\/SR-Premium-Content.gif\")
The UK Financial Conduct Authority\u2019s (FCA\u2019s) latest strategy document<\/a> sets out its overarching strategy for the next three years, with the new Consumer Duty<\/a> being the \u2018cornerstone\u2019. The long-awaited overhaul signifies a pivotal moment in UK financial services, as the regulator attempts to modernise the framework through which the sector is governed.<\/p>\n\t\t\t![\"Download](\"https:\/\/solutionsreview.com\/data-management\/files\/2019\/01\/data-management-speedbump-cta.jpg\")
<\/a><\/div>\n\t\t<\/div><\/div>\nFCA Consumer Duty Summary & Data Archiving<\/strong><\/h2>\n
<\/div>\nWhat\u2019s a Consumer?<\/strong><\/h3>\n
Why Now?<\/strong><\/h3>\n
Who Does it Apply?<\/strong><\/h3>\n
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What\u2019s Changed?<\/strong><\/h3>\n
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How Urgent is it?<\/strong><\/h3>\n
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Embedding it in the Culture?<\/strong><\/h3>\n
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