CONSUMER DUTY.
ENSURING CONSUMER PROTECTION.
As the Financial Conduct Authority (FCA) introduced the most significant update to its regulatory framework since the Retail Distribution Review in 2013, the new Consumer Duty for financial services took effect by the end of July 2023. This change represented a crucial evolution in how firms engaged with customers and designed their offerings.
CONSUMER DUTY EXPLAINED.
The Consumer Duty focuses on ensuring financial services firms prioritise positive outcomes for customers. It requires firms to design products that meet customer needs, ensure clear communication, and provide fair value. The Duty emphasises customer understanding, ongoing support, and fair treatment, building on existing principles like Treating Customers Fairly (TCF). Its goal is to foster transparency, trust, and better customer experiences across the industry.
PUTTING CUSTOMERS FIRST.
GardX focus on getting things right by always putting good customer outcomes at the centre of their business and focusing on the diverse needs of their customers at every stage of the journey.
This means that customers can make good financial decisions, based on getting the information they need at the right time and in a way that is understandable.
The Consumer Duty ensures that products and services improve for the end user and that products provide better value as a result.
KEY INITIATIVES.
At GardX, we are dedicated to improving customer outcomes and aligning with Consumer Duty regulations. To support this, we have implemented several initiatives aimed at enhancing customer experience and ensuring better value. These include:
– Consumer Duty Committee formed and meet monthly
– Customer journey reviews complete for all products annually
– Annual Product, Pricing and Policy Wording Review
– Introduction of Online Customer Care Portal
– New Tele-Communication Platform Launched
– Customer Communications Updated
– Additional Training including Vulnerable Customers
– Improved Success Measure Reporting including Vulnerable Customers
– Quality Audits Framework Review including Vulnerable Customers
VULNERABLE CUSTOMERS.
Customer understanding has been an area of focus for our business for some time. We are working towards making all of our documentation clearer and more understandable, and also ensuring that the information is provided in an effective and timely manner to allow customers to make an informed decision. It’s crucial that customers receive the right information at the right time to help their decision making process.
With regards to customer support, we aim to remove any barriers that could hinder the way that our customers interact with our business. We offer access through email, via a monitored telephone service system and via a customer care portal. We always aim to provide a responsive and accessible customer support system and provide an easy facility for the customer to get help and advice, and that we ensure that they receive the support that they expect, especially for vulnerable customers.
As part of our implementation plan, we have reviewed the customer journey for all of our products and have made some critical changes to ensure that the journey is as smooth as possible. Setting higher standards and putting customers’ needs first is central to our strategy. This is particularly important as consumers face increasing pressures, including those relating to the cost of living. This makes it even more important that customers can make informed, effective decisions, act in their interests and pursue their financial objectives.
To summarise, the duty sets a higher, clearer standard by requiring all of us to ensure that our products and services are fit for purpose and offer fair value. GardX will always consider the needs, characteristics, and objectives of our customers – including those with characteristics of vulnerability – at every stage of the customer journey.
“Compliance is not simply about following rules; it’s about fostering a culture where putting the customer first is at the core of everything we do. Our approach to Consumer Duty ensures that doing the right thing for our customers is not just a requirement but a fundamental part of our daily operations, guiding every decision we make. With a focus on fair treatment, clear communication, and ensuring that products and services meet the needs of our customers, especially the vulnerable, we are committed to delivering the best outcomes for those we serve.”
David Sharman – Quality & Compliance Manager
It's our culture.
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