In essence, providers, platforms and advisory firms will have to do the following with a view to achieving better outcomes for customers:
- Provide clear and timely information about the products and savings they have so they can make informed decisions without delay.
- Check and note the engagement levels of their customers by keeping track of what they have read and understood.
- Ensure products are still meeting customer needs as their circumstances (potentially) change.
- Recommend alternatives where legacy products are out of line with known customer needs.
- Improve customer service elements – ensuring that customers can communicate with their financial product providers through preferred channels when they really need to.
- Ensure the customer is getting fair value for the products and service for which they are paying.
Consumer Duty presents a threat to providers and platforms if they do not serve their customers in a more direct, interactive, meaningful and effective way. They must work harder to really ‘Know Their Customers’ and act on any new knowledge to steer policyholders away from poor financial outcomes.