One in five firms believe the Financial Conduct Authority (FCA) has not been effective in engaging with firms as they plan for and embed the new flagship Consumer Duty.
More than one in ten firms (11%) have also not accessed any information from the regulator on its incoming regime.
The Consumer Duty will be implemented from the end of this month and marks one of the most substantial shifts in how the UK financial services markets will be overseen and the approach taken by the regulator.
The details were revealed by the FCA in its annual practitioner panel survey, which also found firms were more positive about the regulator’s communication phase than the engagement and embedding of the regulations.
Overall 4,881 firms, 31% of those under the FCA, responded to the survey.
Responses were broken down into flexible portfolio firms that comprise the overwhelming majority (99%) of authorised organisations, and fixed portfolio firms which are the largest and most complex but are just 1% of the industry.
Accessing FCA information
In the lead-up to the introduction of the new Consumer Duty regulations, the FCA launched a dedicated page on its website outlining the new rules and implementation process, as well as other specific information for firms in this area.
Alongside this, information was also included as part of the FCA’s regulation round-up, where appropriate.
Only 85% of flexible firms said they were aware of the Consumer Duty through these channels, with one in ten (11%) saying they had not accessed any information or guidance provided by the FCA.
In contrast 95% of the largest firms said they had accessed information from these channels.
Communication, planning and embedding
FCA communication with firms on the proposed approach to implementation was generally seen as satisfactory, with more than three-quarters (78%) of flexible firms rating communication as effective compared with 15% who felt it had not been.
This was almost identical among the larger fixed firms with 78% agreeing it was effective and 17% saying it was not.
However, approval figures dropped when considering how the FCA had engaged with firms regarding planning and embedding the duty.
One in five flexible firms (19%) felt the FCA’s engagement had not been effective in this regard with only two thirds (66%) saying it had been effective.
The largest firms were even more dissatisfied with almost a quarter (23%) saying the FCA communication around embedding had not been effective.
A similar 67% considered the FCA effective in engaging with firms to shape planning around embedding the new regulations.
