Banks, insurers and other companies will have to ensure their services are actually good for their clients and that this approach is taken at all levels of the business, Ian Searle, head of department for consumer and retail policy at the Financial Conduct Authority, said at a press conference.
“We don’t expect firms to treat every single consumer as if it’s their sister or brother but we do expect firms from a professional perspective to treat their consumers well and to support them well throughout,” said Sheldon Mills, executive director for consumers and competition. Boards should sign off on annual reports on how customers are treated, though there will be no requirement for these to be published. The FCA is keen to prevent consumers from being kept on hold for long periods of time though there will be no right for a customer to speak to a person when complaining.
Sara Cody, counsel in the financial regulation team at the law firm Linklaters, said financial institutions appear to back the reforms. “The aim to put consumers back at the heart of decisions and product development is very difficult to argue with,” she said in an interview.