In May 2024, AFEP held a workshop for member firms to help them prepare for the first Consumer Duty Board report due in July2024. The output of this informal session has been documented and can be accessed on the member portal. It s designed to be a practical guide to help firms, but it is not a substitute for independent advice based on a firms individual business model.
It is clear from FCA communication that firms must provide and monitor MI and regularly use it to ensure compliance. It is also vital that MI is used in Boardreports to support conclusions about performance against the Consumer Duty requirements. Frameworks should be documented and discussed with considerable challenge and input from the Consumer Duty Champion.
We would also advise firms to refer back to the FCA’s Consumer Duty guidance and ensure this wording is reflected in their Board reports and there is meaningful evidence to support the implementation of robust practices.
This document outlines some of the MI firms may want to consider.