What can advisors do to ensure compliance with Consumer Duty?

June 18, 2023 by Brendan O'Neill

Mortgage Advisors

The new Consumer Duty rules are due to come into force in under two months, with the deadline set for 31st July. This means being able to comply with them is now a pressing matter for mortgage advisors, as substantive compliance is required by the FCA from the first day.

So what can advisors do to ensure they do not fall foul of the Consumer Duty rules?

Be on top of plans

Advisors should already have a basic plan in place, but being on top of which parts have already been implemented and which are still to be done is the first step. Up until now, much of the focus has likely been on figuring out potential problems and coming up with solutions before the deadline, but the next stage should be to go through each of them to see what progress is being made.

Conduct a communications review

By ‘substantive compliance’, what the FCA will really want to see is that advisors are able to deal with client risks quickly and effectively. A big part of that is down to communication, so consider things from the perspective of clients. Are your communications clear and accessible for them? Any areas that seem to need work should be a short-term priority.

Consumer Duty will be a big change and is likely to become almost as important as completing the CeMAP course to the professional reputations of mortgage advisors going forward. Therefore, getting on top of compliance is something no advisor can ignore.