As the 31 July deadline for meeting the requirements of the UK’s Consumer Duty for products and services open for sale and renewal is approaching, 91 percent of contracts for differences (CFDs) providers believe they will meet all or most of the requirements. The figure is higher than the average of 86 percent when considering all other sectors.
The UK’s Financial Conduct Authority (FCA ) questioned 44 CFDs brokers to know the industry’s preparedness toward Consumer Duty requirements. In total, 1,230 companies across 17 sectors participated in the FCA survey.
The report published by the FCA further detailed that 61 percent of the CFDs providers will comply with all the Consumer Duty requirements by the deadline, while 30 percent will meet most of the requirements. Another 2 percent of the companies believe they will comply with some requirements but will “have much work to do.” The Consumer Duty requirements do not apply to the remaining 7 percent.
Source: FCA
Under the upcoming Consumer Duty requirements, companies must provide customers with products and services that meet their needs and offer fair value. Further, costumes must receive easy-to-understand communication and should get customer support when needed. These rules will be applied to products and services provided to retail and business-to-consumer customers.
Strong Awareness
Interestingly, the tightly-regulated CFDs industry is highly aware of the Consumer Duty requirements, as 100 percent of the companies questioned by the regulator know the requirements and understand how they will be applied to their organization.
According to the report published by the FCA, 30 percent of the CFDs industry participants ‘strongly agree’ that the long-term benefits of the Consumer Duty will outweigh the short-term costs to their organization. Another 14 percent ‘tend to agree with this question, while 39 percent neither agree nor disagree. Seven percent of the CFDs industry participants ‘tend to disagree’, five percent ‘strongly disagree’, and the remaining seven percent ‘don’t know’ about the long-term benefits over the short-term costs.
Furthermore, 91 percent of the CFDs industry participants have adequate expertise to implement the Consumer Duty by the end of July deadline, while 84 percent have sufficient resources.
Source: FCA
As the 31 July deadline for meeting the requirements of the UK’s Consumer Duty for products and services open for sale and renewal is approaching, 91 percent of contracts for differences (CFDs) providers believe they will meet all or most of the requirements. The figure is higher than the average of 86 percent when considering all other sectors.
The UK’s Financial Conduct Authority (FCA ) questioned 44 CFDs brokers to know the industry’s preparedness toward Consumer Duty requirements. In total, 1,230 companies across 17 sectors participated in the FCA survey.
The report published by the FCA further detailed that 61 percent of the CFDs providers will comply with all the Consumer Duty requirements by the deadline, while 30 percent will meet most of the requirements. Another 2 percent of the companies believe they will comply with some requirements but will “have much work to do.” The Consumer Duty requirements do not apply to the remaining 7 percent.
Source: FCA
Under the upcoming Consumer Duty requirements, companies must provide customers with products and services that meet their needs and offer fair value. Further, costumes must receive easy-to-understand communication and should get customer support when needed. These rules will be applied to products and services provided to retail and business-to-consumer customers.
Strong Awareness
Interestingly, the tightly-regulated CFDs industry is highly aware of the Consumer Duty requirements, as 100 percent of the companies questioned by the regulator know the requirements and understand how they will be applied to their organization.
According to the report published by the FCA, 30 percent of the CFDs industry participants ‘strongly agree’ that the long-term benefits of the Consumer Duty will outweigh the short-term costs to their organization. Another 14 percent ‘tend to agree with this question, while 39 percent neither agree nor disagree. Seven percent of the CFDs industry participants ‘tend to disagree’, five percent ‘strongly disagree’, and the remaining seven percent ‘don’t know’ about the long-term benefits over the short-term costs.
Furthermore, 91 percent of the CFDs industry participants have adequate expertise to implement the Consumer Duty by the end of July deadline, while 84 percent have sufficient resources.
Source: FCA
