Consumer Duty

How Your Business Can Prepare for the FCA’s New Consumer Duty Proposals

3 min read

If you’re struggling to understand how to show regulators that your business is compliant following the FCA’s recent Consumer Duty proposals, you’re absolutely not the only one. 


Aimed at bringing in a higher standard of consumer protection in retail financial markets, the proposals are considered one of the biggest shake-ups in the industry’s responsibility to their consumers for many years. In some cases, it will call for a complete overhaul of not only processes and communications but also training and culture throughout Financial Services firms.


What is the issue for businesses?

Since the guidance was released in December last year, many companies have found it difficult to understand exactly how to show their compliance by the deadline of April 2023, given that the advice is very far-reaching and it can be difficult to understand exactly how to put it into action.


While the update is long overdue from a customer point of view and will no doubt bring in a new level of best practice when it comes to treating customers fairly, the short deadline introduced for implementing the required changes has meant that many companies are concerned they won’t be considered compliant in time. The Times recently released an article highlighting that one of the most influential lobby groups, UK Finance, has pleaded with the FCA to give them longer to prepare, stating that they would need at least 2 years to build and implement processes to get them to the regulator’s required standards.


The proposal also lacks clear recommendations for exactly how companies should meet Duty requirements and what practical steps, tools, and technologies they should be implementing to be compliant. 


How can speech monitoring automation help to prepare your business for the Consumer Duty proposal?


Given the wide scope of the Consumer Duty, there are many actions firms need to consider taking as soon as possible.  There are challenges when it comes to prioritising which of these actions you should be tackling first, however it should be noted that a great deal of the guidance focuses on the need to gain greater oversight of customer interactions, maintaining a high level of customer service and producing more positive customer outcomes.


By using speech monitoring software, your company can achieve increased control over your customer interactions, ensuring they receive a consistent and positive experience regardless of whether they’re speaking directly with you, or an outsourced third party (such as a call centre). 


Aveni’s platform allows you to overlay situational factors, such as channel of communication or information provided, with things like the characteristics of a customer, their vulnerability status, and so on, to get a deeper understanding of customers and how to improve their experiences and outcomes. This additional information can help you to ensure that consumers achieve the best outcomes and have a better understanding throughout the journey.


The platform can also help to make sure that managers and staff are complying with stricter conduct rules by analysing all customer interactions and flagging any calls where the conduct of customer representatives might be called into question. In addition, you can train the platform to pick up incidents relating to firms’ specific products or processes using your unique data, meaning you to be sure that you’re in keeping with your own internal compliance measures, as well as the FCA’s.


Working with Aveni

If you’d like to find out more about how Aveni’s speech analytics platform can help you prepare for the new proposal, please get in touch and a member of our team will be happy to help.

Related posts

Feel like the first Consumer Duty board report deadline is creeping up on you too quickly? Don’t panic. Here are some quick and easy steps financial advice firms can take...
Adviser productivity
A number of recent, high profile cases , serves as a stark reminder of the importance of meticulous record-keeping for financial advisors. The Financial Conduct Authority (FCA) is penalising advice...
Financial Services
Just four months into 2024 and the FCA has been relentless at proving that Consumer Duty is every bit the ‘TCF with teeth’ the industry expected it to be. Companies...
The financial services (FS) industry is steeped in complexity and ever-evolving regulations. From process inefficiencies to outdated legacy systems that require manual data input that hasn’t been maintained to a...
What is the EU AI Act: the key takeaways   The December 2023 EU AI Act is the first comprehensive legal framework for AI in the world. It aims to...
Consumer Duty
Based on current trends and strategic planning, here are the top 5 regulatory developments the Financial Conduct Authority (FCA) will prioritise in 2024 and everything you need to know about...
Customer Vulnerability
The state of the economical and political landscapes has vastly changed customer vulnerability in the UK over the last 12-18 months. Energy prices have skyrocketed, food costs continue to increase,...
We know that there’s a lot to come in the next twelve months. That’s why we asked a popular chatbot what it predicts to be the top 5 generative AI...
Adviser productivity
Cavendish Online, part of Lloyds Banking Group, has partnered with, the Artificial Intelligence fintech business, to become one of the first protection distributors in the market to use AI...
Financial Services
Nothing gets us through the day better than a podcast. That’s why we’ve put together this list of our top 5 financial services podcasts to add to your playlist for...
Consumer Duty
  We know that FCA’s Consumer Duty is a marathon, not a sprint. As FCA’s Director of Cross Cutting Policy & Strategy Nisha Arora reminded us recently, “The Consumer Duty...
Adviser productivity
In a perfect world, financial advisers would only spend their time providing personalised financial advice to their clients. But, alas, we’re in the real world, where a good chunk of...

Aveni’s platform uses the latest in NLP to transform productivity and risk oversight.

Scale compliance at a fraction of the cost

Cut financial advice admin from hours to minutes with Aveni’s AI assisitant

Aveni Assist

Get up and running with Aveni Assist and how it can help transform productivity and compliance. 

Aveni Detect

Get up and running with Aveni Detect and how it can help transform productivity and compliance. 

Read the latest articles from Aveni

Access our latest whitepapers, webinars, brochures and more

Jargon-bust your way to a better understanding of all things AI