In Autumn 2023 the FCA conducted a survey of 634 firms that had not been surveyed previously. The FCA was particularly interested in how smaller firms (1-49 employees) had implemented the Duty and whether firms had made changes to their consumer contracts and financial promotions.
Key information from the firms surveyed indicates improvements since Spring 2023:
- The proportion of firms surveyed reporting that they have completed the required steps has significantly increased for some portfolios, and 43% of firms surveyed reported that they are not having difficulty with implementing any aspects of the Duty.
- The percentage of firms surveyed that conducting relevant activities have increased for several key elements of the Duty. Firms are most likely to report that they have identified the target market for their products and services (74%), and nominated a member of staff, team, or committee to oversee implementation (73%).
- 74% of firms surveyed also report that they have conducted a fair value assessment (note, this measure was not included at wave 1 of the research).
- 38% of firms surveyed have improved significant consumer contracts and 30% of firms have identified or made significant improvements to their marketing strategies.
Firms need to be sure they are not only undertaking the necessary activities to embed the Duty, but also that they can evidence this activity, delivering good consumer outcomes. If the FCA notices any limitations/weaknesses in firms board assessment reports the FCA will act in following ways:
- thematic work, followed up by sector specific interventions where appropriate;
- multi-firm work within sectors where the FCA has noticed concerns and see common themes and risks;
- interventions where the FCA has concerns about the approach individual firms have taken to Duty implementation and the outcomes they are delivering for their customers.