FCA's Consumer Duty review finds weak focus on customer outcomes

Review into firms’ outcomes monitoring

Sophia Panayi
clock • 2 min read

The Financial Conduct Authority (FCA) has found some firms’ monitoring frameworks were not clearly focused on customer outcomes or the risks of harm, following a review into firms’ outcomes monitoring under Consumer Duty.

Over the last year, the regulator's review observed that these firms relied on high-level monitoring without a clear structure for identifying poor outcomes, understanding their causes or taking appropriate action. While the strongest approaches were "structured, evidence-based and focused on using information to identify risks", the FCA said, some firms need to do more to make monitoring "proactive and outcomes-focused, demonstrate how information drives action and test whether interventions are effective". There are also still areas for improvement in how firms use and evidence mana...

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