- 31st July 2023
- Posted by: Celticfp
- Category: Financial Planning
Introduction to the New Consumer Duty
The new Consumer Duty regulations, which come into force today (31/07/2023), are designed to enhance client protection by setting higher and clearer standards. The regulations prioritise clients’ needs and outcomes, acting in good faith towards them, and guiding them towards reaching their financial goals.
The New Consumer Principle
The cornerstone of the new regulations is the Consumer Principle, which emphasises making informed decisions and ensuring continued financial well-being. This principle sets the tone for the entire framework, putting the clients’ interests at the forefront.
These rules provide a comprehensive framework for key areas of client relationships. They aim to enable and support clients in pursuing their financial objectives, ensuring that the financial industry acts with integrity and transparency.
Four Consumer Duty Outcomes
The regulations define four specific outcomes that financial institutions must strive to achieve:
- Making Wise Financial Decisions: Empowering clients to understand their goals, plan for the future, and make informed decisions.
- Providing Prompt and Helpful Assistance: Ensuring that clients receive timely and effective support.
- Guiding Clients Towards Reaching Their Financial Goals: A strong focus on client-centric solutions and advice.
- Enabling and Supporting Clients to Pursue Their Financial Objectives: Comprehensive tools and resources that foster financial growth and stability.
Making Wise Financial Decisions
The new regulations emphasise the importance of informed decision-making. Clients must be provided with the necessary tools and information to make wise financial choices that align with their long-term goals.
Providing Prompt and Helpful Assistance
Financial institutions must now prioritise prompt and helpful assistance. The goal is to create a responsive and client-focused environment where inquiries and concerns are addressed swiftly and effectively.
Advice for Your Financial Future
The new Consumer Duty regulations also encompass comprehensive advice for individuals’ financial futures. The emphasis is on creating a roadmap that aligns with personal financial goals, providing a clear path towards financial security and success.
The new Consumer Duty regulations mark a significant milestone in consumer protection within the financial industry. By emphasising client-centric approaches, informed decision-making, prompt assistance, and strategic financial planning, these regulations set a new standard for integrity and excellence.
Learn more by downloading our free Consumer Duty Guide