Inside FCA Podcast: What does the Consumer Duty consumer support outcome mean?

The Financial Conduct Authority (FCA) has published the transcript of another podcast relating to the new consumer duty. Specifically, this time the transcript includes an interview with the FCA’s Policy Team member Sean Cafferky concerning the „consumer support outcome“ of the new duty which relates to the objective of providing consumers with an adequate level of support throughout their engagement with a firm, service, or product.
Mr. Cafferky thereby describes, among other things,
– what is meant by „consumer support outcome“ from the regulator’s point of view;
– how to determine what a „reasonable support outcome“ is and the factors that the FCA finds useful to consider in this context;
– whether or not and – if applicable – which different support channels firms should offer to fulfill their new duties;
– what is meant by „sludge practices“, the difference to „friction“, and the line drawn between the two different practices;
– the regulator’s expectations as regards the monitoring of the support outcome by firms;
– the supervisory approach of the FCA to determine whether or not a firm is meeting its new „consumer support outcome“ requirements; and
– the regulator’s expectations as to the steps a firm must take when not meeting these requirements.