Consumer Duty webinar – Payments and e-money [pdf]

On April 26, 2023, the Financial Conduct Authority (FCA) published the transcript of a webinar for payments service providers and e-money businesses relating to the new consumer duty. Specifically, the webinar clarifies and covers
– who the new duty applies to;
– how the duty applies to payments firms;
– what products and services are in-scope of the new duty;
– which outcomes payment service providers and e-money institutions are expected to deliver to clients; and
– which steps firms should take to ensure compliance with the new duty.
Additionally, at the end of the webinar, there are numerous frequently asked questions (FAQs) relating to the new consumer duty, including the following, among others (as quoted):
– Could you [the FCA] describe some examples of potential harms we [industry members] should be looking out for with respect to the design of e-money products?
– What we [the FCA] would consider to be material influence of outcomes?
– What is the frequency of the monitoring and assessment of whether the firm is delivering good outcomes for its customers?
– How does the Consumer Duty apply to PISPs [payment initiation service providers]who don’t deal directly with end consumers?
– Is there a sample implementation plan or sample fair value assessment?
– Once we [e-money institutions] have established the need of the customer in the target market, what are some examples of types of qualitative and quantitative testing measures we can carry out to determine that the E money product in this case is meeting the needs of consumers?
– „hat do you [the FCA] define as outcome testing for open banking firms?
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The video of the webinar may be accessed via this link.