Consumer Duty
What Consumer Duty means for Raymond James
The Consumer Duty, a regulatory framework introduced by the FCA on 31 July 2023, imposes higher standards of consumer protection on firms.
The Consumer Duty introduces a new Consumer Principle that provides a high-level expectation of conduct and associated outcomes:
Principle 12: A firm must act to deliver good outcomes for retail customers
New cross-cutting rules set the overarching conduct which firms must demonstrate when they act to deliver good outcomes for retail customers:
- Act in good faith
- Avoid causing foreseeable harm to retail customers
- Enable and support retail customers to pursue their financial objectives
Consumer Duty further enhances TCF and Conduct with four specific outcomes, which are a suite of rules and guidance setting more detailed expectations for a firm’s conduct. These four specific outcomes represent the key elements between firms and their relationships with consumers:
- Products and services
Products and services are designed to meet the needs of consumers, and sold to those whose needs they meet
- Price and value
The price of products represents a fair value for retail customers in the target market for those products
- Consumer understanding
A firm must support retail customer understanding so that its communications:
• meet the information needs of retail customers
• are likely to be understood by retail customers
• equip retail customers to make decisions that are effective, timely and properly informed
- Consumer support
A firm must design and deliver support to retail customers so:
• it meets the needs of those customers (including vulnerable customers)
• it ensures products can be used as anticipated
• it includes appropriate friction in its customer journey to mitigate the risk of harm
• retail customers do not face unreasonable barriers
Raymond James’ approach to the Consumer Duty
The Raymond James Client First culture, and our business strategy of supporting clients and their wealth managers, align well with the Consumer Duty. However, the Consumer Duty regulation has been an excellent opportunity for us to ensure that:
- We proactively seek to deliver good outcomes and put consumers’ interests at the heart of our activities;
- We focus on the outcomes that consumers receive, whilst enabling them to pursue their financial objectives;
- Clients have a sufficient understanding of how our services function;
- Where we identify that good outcomes are not being achieved, we address it comprehensively and promptly; and
- We consistently challenge ourselves to ensure our actions are compatible with consumers’ interests and financial objectives.
Moving forward
Considering the firm’s long-established culture of Client First, Raymond James fully endorses the principles of Consumer Duty. We believe that they are aligned with our vision to be a financial services firm as unique as the people we serve, transforming lives, businesses, and communities through the power of personal relationships and professional advice.
We will continue to challenge ourselves to enhance and develop the services we provide our clients and ensure good consumer outcomes.
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