Press release

7 Feb 2022 London, GB

The majority of UK financial services firms have initiated work to comply with the FCA's new Consumer Duty ahead of the April 2023 deadline, but almost a third have yet to start activity – EY Industry Poll

Only 11% of UK financial services firms polled claim their programme of work to comply with the new Consumer Duty has been formally established and they are working through the required change, although a further 58% of respondents have initiated activity

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Senior Manager, Media Relations, Financial Services, Ernst & Young LLP

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Data taken from a poll of 280 senior management representatives from UK financial services firms in January 2022

  • Only 11% of UK financial services firms polled claim their programme of work to comply with the new Consumer Duty has been formally established and they are working through the required change, although a further 58% of respondents have initiated activity
  • Almost a third (29%) of all firms surveyed claimed they have not yet started any activity, and at the other end of the scale, a solitary 1% claimed they are near completion
  • When asked what concerns them the most in terms of meeting the Consumer Duty requirements, a quarter of respondents (25%) called out the scale of change and transformation required, with 12% worried they won’t achieve compliance by the deadline
  • Twenty-three per cent of respondents claimed their top concern is achieving a ‘good outcome’ as defined by the Regulator; 17% are worried about the technology challenge of creating a robust reporting model; and 19% believe establishing the correct governance and accountability framework will present material challenge

Heather Alleyne, UK Financial Services Regulation Partner at EY, comments: 

“The new Consumer Duty is a top regulatory priority for firms operating in the UK, but it is not one with an easy shortcut to successful compliance. While it is unanimous that the direction of travel is positive, the scale of change required within the short timeframe is challenging the industry on a number of levels. The 2023 deadline is arguably very tight, and requires firms to establish a formal programme of work urgently if they haven’t already, not least because the limited range of rules and guidance published in December 2021 means there is an interpretation phase to complete first. The onus is undisputedly on firms to decide how they will ensure they have placed consumers at the heart of their individual business models, and the regulator is unlikely to be lenient towards those that demonstrate little progress to date. With over a year still to go until the deadline, there remains time for firms to progress and work through the change and transformation required, but this window of time is getting narrower every day.”