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Management Information Insights for Consumer Duty

Staying informed and proactively managing consumer duties remain a top priority for firms. However, detecting problems and anticipating risks has proven to be a significant challenge for many businesses. To address this challenge, we're introducing a new Consumer Duty Management Information (MI) template that firms can utilise to effectively track and assess consumer duty-related data. This MI template is set to become a valuable tool for businesses striving to enhance their understanding of consumer support, pricing, value, and compliance efforts.

Against the backdrop of the ever-growing cost of living crisis and the increasing number of people facing financial difficulties, there is an urgent and pressing need to place consumers at the heart of firm decisions. This ensures that positive outcomes are consistently achieved. Last year, the European Securities and Markets Authority highlighted the importance of preventing undue costs for investors due to their significant impact on returns. In May of this year, the Financial Conduct Authority (FCA) published its findings from the review of fair value assessment frameworks. Additionally, the second and third Ipsos/FCA surveys on the implementation and embedding of Consumer Duty are expected to provide valuable insights. Of course, the FCA's Dear CEO letters and thematic reviews will also remain highly relevant. While this may create some noise, these valuable observations and findings should be integrated into the design and perspectives reflected in your Management Information.

The world is changing, along with the lives and priorities of people, and businesses must be resilient and adaptable to these changes. In this post, we will break down the top 10 essential points to consider when designing and utilising your Consumer Duty Management Information:

1. Data is Paramount

First and foremost, identify your data sources and define the specific data points relevant to consumer duty management. This step lays the foundation for effective analysis and reporting.


2. Trend Setter

Analysing trends is crucial for proactive management. Monthly comparisons of data allow you to quickly identify emerging patterns. Visual representations like line graphs and bar charts can help illustrate these trends, making it easier to identify significant changes or areas of concern. 3. A little less conversation, a little more action

Based on the analysis and observed trends, it's essential to provide concrete recommendations and action items. These should guide your efforts in improving consumer support, understanding, and compliance. Remember to incorporate findings from Dear CEO letters, surveys, thematic reviews, or other regulatory reports. 4. Stamps of approval

Before disseminating the MI report, ensure it undergoes senior management and compliance approval. Multiple layers of review help maintain accuracy and alignment with organisational goals and of course this MI forms the basis of that Annual Board Assessment report.

5. Risky business

Design your risk tolerance thresholds in the MI report to reflect your business's unique aspects, size, and scope. Ensure these thresholds are adjusted as your business evolves to remain relevant to your changing needs. 6. Time after time

Month-on-month comparisons allows you to track changes in key performance indicators (KPIs) over time, helping you to quickly identify areas that require attention.

7. We have a problem (or do we) Houston.

Clearly identify in your report where any predefined thresholds have been breached. While not all breaches indicate problems, they warrant closer examination to understand the underlying causes and take informed actions. 8. Let’s be honest

Incorporate honest and qualitative insights, be bold about what challenges you faced, and potential solutions based on the data. This narrative provides context for the quantitative metrics and offers a deeper understanding of the consumer landscape.

9. Lights, camera, action

Illuminate your actionable steps, assign responsibilities, and set deadlines. This fundamental aspect of your MI ensures that insights derived from the data result in tangible improvements in consumer support and outcomes.

10. Method to your methodology

As demonstrated in our MI template examples, provide explanations of data sources, methods used for data collection and analysis, and any changes in data collection methods since the last report. This transparency ensures the reliability of the data and the validity of the analysis. In conclusion, effective Management Information is crucial for businesses seeking to fulfil their obligations and consistently deliver positive outcomes for their customers. By leveraging our Consumer Duty Management Information Report template, you can gain valuable insights, make informed decisions, and take proactive steps to enhance consumer satisfaction and regulatory compliance.

Should you need expert guidance or access to resources, like our Consumer Duty Management Information Report template, reach out to Neil Makwana. More details can be found at Consumer Duty Solutions at Leaman Crellin. We also offer Consumer Duty Health Checks for firms to ensure that their regulatory health is optimal. Given the challenges of embedding Consumer Duty, we stand ready to assist you on your path to compliance.

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