Firms must also consider data retention periods and access controls, ensuring that only those who need to view sensitive information can do so.
This careful balance between data privacy and regulatory compliance is essential for delivering appropriate customer outcomes under the consumer duty.
Emphasising customer welfare and transparency
Firms must overall demonstrate a thorough understanding of customer vulnerabilities, ensure robust processes for identification and support, design services that meet the needs of vulnerable customers, and maintain transparency in their reporting.
By doing so, they can not only comply with the consumer duty but also build trust with their customers.
While the regulatory landscape may evolve, the core principles of prioritising customer welfare and fostering transparency will remain central to the industry's future.
Alan Hughes is partner and head of retail financial services at Foot Anstey
