The Financial Conduct Authority (FCA) has warned that there are still some financial services firms behind on planning for the upcoming Consumer Duty.

The rule-change, which comes into force in July, is designed to set higher and clearer standards of consumer protection.

New firms as well as regulated firms will need to comply with the overarching principle of the Duty, which stipulates that consumers should receive communications they can understand, products and services that meet their needs and offer fair value, and get the customer support they need, when they need it.

The regulator has reviewed a sample of implementation plans, finding that while many firms have shown they understand the shift by establishing extensive programmes of work to comply with it properly, others risk struggling to apply the Duty as they have not yet put in place sufficient planning.

“Given the scale of the reform, we recognise that some firms need to make significant changes,” said Sheldon Mills, executive director of consumers and competition, FCA. “For firms which are further behind in making the necessary changes, there is time to put that right and for them to show they are acting in the spirit of the new Duty.”

The authority has called on firms to focus on prioritising effectively over the next six months by honing in on areas that will make the biggest impact on outcomes for consumers.

It also urged firms to make sure they are enforcing the changes needed so consumers receive communications they can understand, whilst also collaborating with other firms by sharing information and working closely with commercial partners.

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