Target Newsletter - Issue 186 February 2023

Paradigm Compliance Update

FCA Supports firms through the transition to implementing the Consumer Duty

• 31st October 2022 firms’ boards or management bodies should have agreed their plans for implementing the Duty. • By the end of April 2023 manufacturers should have completed all reviews necessary to meet outcome rules and shared necessary information with their distributors. • The Duty comes into effect on 31st July 2023 for new and existing products or services that are open to sale or renewal. • On 31st July 2024 the Duty comes into force for closed products or services. Overview of the requirements of the Duty The FCA summarise the four Duty outcomes cross referenced to their Finalised Guidance paper FG 22/5. We set out the key highlights from the letter in this article, and Paradigm will also be providing further support through our “On Film” series, which will be extended to include four new presentations dealing with each of the Duty’s outcomes, so do look out for these presentations, which we hope firms will share with all their staff as appropriate. PARADIGM COMMENT The letter relevant to us is a must read for SMF’s within a practice and for the team(s) behind the implementation plan work. We recommend that a CPD record is maintained to evidence that the SMF responsible has made themselves fully familiar with the content of the letter.

Graeme Stewart Head of Consultancy Paradigm Consulting

Introduction The FCA has recently published a series of letters under the title “FCA supports firms through the transition to implementing the Consumer Duty”. They comment: “As firms continue to get ready for the implementation of the Consumer Duty, the FCA is supporting firms through the transition with a program of engagement, which includes setting out in letters the expectations of the Duty and arranging a series of regional in person events for specific groups of small and medium-sized firms”. The letter that is relevant to our firms is the “Implementing the Consumer Duty in the Consumer Investment sector” version. In addition, the FCA has announced a series of live events across the UK running from 21st February until 15th June 2023. The events are charged at £85 per person and there are investment and mortgage focused versions. Paradigm believes that many firms will want to attend these regional events and firms can reserve their place with the FCA book here . The timeline The FCA remind firms of the timeline for the introduction of the Duty:

• Products and services are designed to

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