The Association of Consumer Support Organisations (ACSO) has responded to the FCA's Consumer Duty consultation.
Cara Elliott, policy and public affairs advisor at ACSO, said that 'ACSO welcomes the FCA's proposals for new Consumer Duty to provide greater protections for consumers.
As a consumer support organisation, we believe firms should already be following a similar approach to protect consumers. The expectation for firms to 'get things right first time' and to put themselves in the shoes of consumers is likely to lead to a greater emphasis on designing products and services that result in good consumer outcomes.'
In reference to the Consumer Principle, Elliott also adds that some of the FCA's statements 'are open to wide interpretation by individual firms and could cause confusion for firms and consumers. If not detailed adequately, the FCA risks creating a lack of consistency across the financial services sector.
On the FCA's guidance for firms on their fair treatment of vulnerable consumers, we hope the Consumer Duty will enhance these principles and ensure the needs of the most vulnerable in society are appropriately met. This should be a priority for the Consumer Duty, as according to the Financial Lives coronavirus panel survey, the pandemic increased the number of vulnerable consumers by more than 3 million.'
Though we welcome the FCA's new proposals, it is crucial that guidance is accessible to consumers and is not overcomplicated. Alongside this, there must be more steps taken to ensure best practice is common knowledge among all firms to encourage competition and optimum service.'
ACSO members can download the full submission from the member's area of the website.