Consumer duty ‘to fall hardest’ on life and pension providers

25 Jan 2023

Life and pension product providers will struggle more than most with the Financial Conduct Authority’s incoming consumer duty, largely because it will require them to manage legacy books of business which have not been touched in years.

Under the consumer duty, by July 31, 2024, providers will need to have a decent understanding of all their customers - including those inherited from other firms, otherwise known as ‘orphan customers’.

This year, providers only need to do this for active books of business - ie, all non-legacy customers - which they already have more points of contact with.

Consumer Duty Whitepaper

In a report published yesterday (January 23), Curtis Banks’ fintech business Dunstan Thomas said the largest areas of challenge in the City regulator’s consumer duty appear “to fall hardest on life and pensions product providers”.

It continued: “By July 31, 2024 [the consumer duty] must also be applied retrospectively to legacy ‘closed book’ product portfolios. “So drawing in orphan customers that may have had little or no communication from their providers in many years.”

Read the full whitepaper here The Full Article

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