There are areas where there is still progress to be made on consumer duty, according to the Financial Conduct Authority’s director of insurance.
Speaking at the Association of British Insurers' annual conference, Matt Brewis said the consumer duty regulations, introduced in July 2023, needed to be embedded in every part of a firm’s business.
He said: “Obviously there are areas where there is still progress to be made.
“In quite a lot of firms consumer duty is being run as a project in the compliance and risk departments rather than being embedded in every part of the business.
“We still want to see greater proactivity from the market, but progress is good.”
Brewis added the regulator is seeing some firms who are waiting until the FCA comes knocking to put measures in place.
From July 31 this year, the regulations will be extended to apply to closed products.
Caroline Dowson, director of customer and product management for Aviva's Wealth & Advice business, said this will bring into scope around 1,000 products for the firm.
She said work has started on this but it can be challenging as some products were designed at a different time and some books were outsourced.
Dowson added: “Consumer duty is good for consumers and good for business.
“It is not just about the project, it is about how we are embedding it throughout the organisation.”
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
