Paradigm has launched a new Consumer Duty Support hub for all adviser firms which includes a new video on how to prepare for the forthcoming rules.
The FCA proposed the new Consumer Duty rules as part of its Consultation Paper 21/13 as a means of ensuring ‘a higher level of consumer protection in retail financial markets’. These new rules and the final guidance – expected before 31st July – will place higher expectations on firms with regards to the standard of care they provide to consumers.
In order to support advisory firms with the new rules – which will need to be implemented by April 2023 – Paradigm has created a new Consumer Duty support hub on its website: www.paradigm.co.uk/services/consumer-duty-support
It is available to all advisory firms, not just Paradigm members, and currently contains a series of videos from Paradigm’s team. The latest online video episode is aimed specifically for mortgage and protection firms, and delves into the likely detail of the Consumer Duty rules, how they are likely to impact on firms, and discusses what preparations firms should consider in order to be ready. The video is 30 minutes long and counts as unstructured CPD for all who watch.
Further detail on the FCA’s Consumer Duty consultation can be found at: https://www.fca.org.uk/publications/consultation-papers/cp21-36-new-consumer-duty-feedback-cp21-13-further-consultation, both of these videos can count towards unstructured CPD.
Following the summer break, Paradigm will be running a series of face-to-face CPD events, at which Consumer Duty will be the core focus. Details of these sessions will be announced in the coming weeks, and these will be open to all DA firms to attend.
Richard Howes (pictured), director of mortgages at Paradigm Mortgage Services, said: “We expect to see the final Consumer Duty rules and guidance in just over a month’s time, and we know this issue is going to be on the agenda for all advisory firms for some time to come. With the FCA currently only leaving firms with nine months to implement these changes, we have a very short window to achieve compliance in this area. As always, Paradigm is looking to be at the forefront of providing DA firms with comprehensive support as they prepare their business for these regulatory changes.
“The FCA has already said it expects the new rules to ‘require a significant shift in culture and behaviour’ and therefore we want to ensure advisory firms get a head start on what is coming over the horizon, and provide them with as much guidance and support in order to begin preparing for this right now.
“Our new Consumer Duty support hub includes our brand new video focused on mortgage and protection firms specifically, and goes into the finer detail about what firms will need to do in order to comply. I would strongly encourage any firms that have not yet taken steps to prepare for the Consumer Duty to take just half an hour to watch this and start to consider the information conveyed.
“As more detail becomes available we will continue to update the support hub regularly as we receive information on the new rules and the expectations and responsibilities firms will need to meet.
“This is a significant workstream for the regulator, and for practitioners, and Paradigm is committed to supporting firms as they seek to meet their new and ongoing responsibilities in this area.”