What should your Consumer Duty annual board report include?

Consumer Duty requires firms to prepare a report for their governing bodies, setting out the results of their monitoring of consumer outcomes and any actions required as a result. Crafting an annual board report for Consumer Duty compliance is not merely a regulatory requirement; it enhances your organisation's integrity and builds customer trust. This article highlights the key elements that should be featured in your Consumer Duty annual board report.

Executive Summary

The executive summary acts as a key introduction to your annual report. It should clearly present your firm's core commitments to consumer protection and rights. Summarize your main findings and explain why the report matters to stakeholders. A well-prepared executive summary delivers a concise overview, allowing readers to understand the report's essence quickly.

Consumer Feedback and Engagement

A dedicated section on consumer feedback and engagement is crucial. Detail how your company collects consumer feedback, processes this information and uses it to enhance products or services. Include data from customer satisfaction surveys and statistics on complaints. Sharing testimonials can also be powerful; for example, if a consumer praised your swift resolution of their complaint, include this to emphasize your commitment to listening to customers and acting on their concerns.

Case Studies and Examples

Incorporating relevant case studies or examples significantly boosts your report's credibility. Choose cases where your firm effectively identified and resolved consumer problems, thereby meeting or exceeding Consumer Duty standards. For instance, if you implemented a new returns policy that reduced processing time and led to a rise in repeat customers, share this success story. Real-life examples illustrate your commitment to transparency and accountability, showcasing tangible benefits for consumers.

Compliance Status and Challenges

A dedicated section detailing your compliance status is vital. Discuss any challenges encountered in meeting Consumer Duty standards and how your firm addressed these hurdles. Highlight compliance measures put in place, such as employee training initiatives or the adoption of new technologies. For example, if you invested in a customer relationship management (CRM) system that improved response times, mention this as part of your commitment to consumer protection. Being candid about challenges not only reflects a willingness to improve but also strengthens trust with consumers.

Staff Training

It is of course imperative that your firm's staff understand the key elements of Consumer Duty, as they are usually the ones dealing directly with your customers. Your report should reflect this and refer to the training you have provided to them. It is helpful if you can evidence this, so make sure a good record of the training is maintained and available, in case the FCA ever request sight of it. Online courses which provide competency certificates are always helpful.

At Andrew Swan Law we have excellent online training available, which is simply called "The Consumer Duty Training Course". It is only 45-minutes long and can be done in your own time. There are multiple choice questions throughout and a Certificate of Competence for those who successfully complete the course. We've also kept the price to a modest £55 plus VAT per person.

Please just follow the link if it would be helpful to your firm: The Consumer Duty Training Course | Andrew Swan Law

Future Initiatives

Looking ahead, outline initiatives your firm plans to implement to enhance consumer protections further. This could include adopting advanced technologies, refining feedback channels or setting new service benchmarks. Highlighting future goals signals your organisation’s commitment to both current consumer needs and ongoing improvement, ensuring customer protection remains a priority.

Final Thoughts

Creating a comprehensive Consumer Duty annual board report is essential for firms aiming to stay compliant and foster transparency. By addressing key elements such as consumer feedback, case studies, compliance status, and future initiatives, businesses can demonstrate their commitment to safeguarding consumers. This report goes beyond fulfilling regulatory obligations; it represents an opportunity to build trust-based relationships with customers.

Now is the time to prioritise your Consumer Duty annual board report. By following these guidelines, your organisation can effectively communicate its dedication to consumer welfare and bring clarity to the complex landscape of consumer regulations.