Central to a firm's ability to deliver good outcomes under the new Consumer Principle is the way in which a firm communicates with its intended target market, as well as its existing customers. Firms must develop a conscious strategy in their communications, including through approval/communication of financial promotions, pre and post-sale disclosures and business as usual communications. The Consumer Understanding outcome helps set the FCA's expectations and provides examples to help firms think about how they should approach communications with potential or current clients (and retail investors more generally even if not a direct client).
Our latest article discusses some of the key types of correspondence and provides wealth management examples to help firms understand, in practice, some of the relevant considerations as part of the communication stream of their Consumer Duty project.
