What the New Consumer Duty Board Report Means for You

The introduction of the Consumer Duty Board Report marks a significant shift towards enhancing transparency, fairness, and commitment to customer well-being in the financial sector.  

The Consumer Duty Board Report serves as a critical communication tool for firms. Its purpose, as noted by the FCA rules, is to ensure transparency and accountability. While there is no prescribed format for the Board report, firms should be prepared to adapt their reporting style and content to match the key actions identified throughout the year. Accordingly, to ensure effective reporting a robust Consumer Duty Board Report must prioritise transparency, accuracy, and flexibility. 

"Establishing a clear ownership structure and engaging senior management throughout the report’s production are key to ensuring transparency and accountability," writes Patricia Celata, Principal Consultant of Asset & Wealth Management at Consulting at Davies.

Celata outlines the purpose of the report, which is to enhance accountability through monitoring, required actions, and a flexible reporting format. She also offers practical guidance on how firms can effectively prepare and finalize their reports, highlighting the importance of evidence-based insights, proactive monitoring, data collection, and board buy-in.

Here are some takeaways:

• Consumer Duty Board Report's Purpose: The report is a critical communication tool that ensures transparency and accountability within financial firms, focusing on monitoring results, identifying necessary actions, and adapting reporting formats to reflect key actions.
• Structured Preparation: Firms must establish a clear ownership structure, prioritize evidence-based insights, implement proactive monitoring, streamline data collection, and build board buy-in to create an effective report.
• Proactive Monitoring: Continuous monitoring and improvement strategies are crucial for compliance, emphasizing the fair treatment and well-being of consumers.

Patricia Celata is Principal Consultant of Asset & Wealth Management at Consulting at Davies.

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