Why improved consumer protections benefit the financial services sector: Gary Ward

The FCA was created a decade ago to regulate how the sector functions. Even though the rules for which its responsible have changed markedly in that time, the FCA’s objectives haven’t wavered.

As well as protecting consumers, it aims to see that the sector remains stable and that there is ‘healthy competition’ between nearly 50,000 banks, insurers and major investment companies offering such services.

When it comes to insurance, being compliant places a significant burden on insurers and brokers.

It is not - and should not be - a routine duty.

Regulations must remain alive to issues affecting the interests of customers, something directly embodied in new rules relating to Consumer Duty which came into force at the end of July.

Even though they were approved last year, firms across the financial services sector were given 12 months prepare for them taking effect.

They require firms to give customers information which can be easily understood, products which not only meet their needs but represent fair value and customer service which is useful and available when needed.

It means an end to what the FCA describes as ‘rip-off charges and fees’ something which all good practitioners in the industry abhor anyway.

The new rules provide for clarity to enable customers - be they businesses or individual consumers - to make informed decisions about transactions which are of huge importance to them.

I share the belief that improved consumer protection is also to the betterment of the financial services sector as a whole, demanding that we review what we do and how we do it, with the ultimate focus being on who we do it for.

Compliance - having the kind of rigorous processes which can meet obligations to our clients and to our industry regulator - should be critical to every single financial services firm.

Despite the growing volume of administration involved, we should never allow it to be viewed simply as a tick-box exercise.

Whatever external pressures there might be from regulators, true compliance is not just about having the right systems in place within a company but ensuring that everyone who works for it has the training and support which they need to deliver the best possible service.

In my own case, I know that insurance is considered a slightly arcane and rather complex business. It is the job of myself and my colleagues to be sufficiently knowledgeable about our clients’ circumstances and how they might best manage any risks to which they might be exposed.

Fundamentally, whatever branch of financial services you work in, compliance comes down to respect: for the rules, for those whom you work with and - above all else - for the people who trust you to help them look after the things which are dear to them.

Gary Ward is Director of Operations & Compliance for Broadway Insurance Brokers