As a company specialising in complaints management systems that support FCA compliance, we understand firsthand the challenges and opportunities of evolving regulations. The recent discussions around the UK government’s stance on Consumer Duty and the Financial Conduct Authority’s (FCA) updated approaches have reignited the debate about the role of regulation in business growth.
While some argue that regulations like the FCA’s Consumer Duty stifle innovation and increase costs, we believe the opposite is true. Properly managed, regulation is not just a box to tick, it is an opportunity to unlock trust, improve consumer relationships, and drive sustainable growth.
Why the FCA’s Consumer Duty Matters
The Consumer Duty regulations have come under scrutiny recently, with Business Secretary Jonathan Reynolds highlighting it as a potential target for deregulation. Reynolds pointed out that some businesses have faced significant costs in implementing these regulations, suggesting that such expenses could have been directed towards job creation and investment. (City AM)
Despite these concerns, it’s essential to recognise that regulation, when managed effectively, can serve as a catalyst for growth. The FCA’s Consumer Duty, implemented in 2023, was designed to ensure financial services firms prioritise customer needs.
From our perspective, the principles embedded in the Consumer Duty align closely with what today’s consumers demand: a financial ecosystem that works for them, not against them. Complaints, feedback, and dispute resolution are key areas where companies can prove their commitment to these principles. Yes, implementing the Consumer Duty comes with costs, but the benefits, such as stronger consumer trust and satisfaction, far outweigh the initial investment.
The FCA’s Proactive Stance on Growth
Recent correspondence from the FCA underscores its commitment to fostering growth while ensuring consumer protection. The FCA outlined plans to reform listing rules, enhance investment research, and revolutionize financial advice, all aimed at bolstering the UK’s financial sector. The FCA’s proactive approach to reforming and adapting regulations underscores the potential for a symbiotic relationship between robust regulatory frameworks and economic prosperity.
The Future of Regulation and Business Growth
Regulation isn’t going anywhere, and nor should it. Consumer trust is a cornerstone of economic prosperity, and fair, transparent regulations help maintain it. The key for businesses is to stop viewing compliance as a cost centre and start treating it as a strategic opportunity.
By embracing the principles of the Consumer Duty, leveraging technology to simplify compliance, and staying aligned with the FCA’s growth-focused initiatives, companies can unlock new levels of efficiency and customer trust.
About us
At Forseti, we are committed to helping financial services firms meet and exceed FCA standards through intelligent complaint management solutions. Whether you’re navigating the challenges of the Consumer Duty or looking to streamline your regulatory processes, we’re here to help you unlock growth through compliance.
Complaint handling is one area where the Consumer Duty and business priorities intersect. Complaints are no longer just a regulatory obligation – they are valuable opportunities to demonstrate care, address pain points, and build long-term loyalty.
Our complaint management system is designed with FCA compliance in mind, enabling firms to:
- Streamline Complaint Resolution: Automating workflows ensures that all complaints are handled quickly, consistently, and in line with FCA standards.
- Monitor and Report Outcomes: Built-in analytics provide insights into trends, helping businesses identify systemic issues and address them proactively.
- Demonstrate Compliance: By capturing detailed records and evidence of complaint handling, firms can show regulators that they are delivering the outcomes required under the Consumer Duty.