Service Overview

Customer outcomes monitoring that demonstrates the delivery of good customer outcomes across the end-to-end product and customer journey is now essential.

The FCA’s Consumer Duty heralds a new world of regulation across financial services. The rules and guidance are wide ranging, touching all parts of our industry, but critically, often in different ways. Being able to examine, report and evidence the outcomes your customers are receiving are crucial in demonstrating compliance with the Duty.

How Square 4 can help

Square 4’s specialist consultants have been supporting our clients successfully develop, deliver, and implement robust and regulatory compliant Outcomes Monitoring Frameworks, Fair Value Assessments, MI, governance and control frameworks and other aspects of the FCA’s Consumer Duty agenda. In addition, we utilise skilled and experienced outcomes testers to support our clients effectively deliver the direct customer outcomes testing component. We have successfully delivered frameworks which are data led, direct customer testing led, and a combination of the two.

We found that the firms who had effective OMFs implemented were better placed to deliver a robust annual Consumer Duty Board Assessment, and were in a position of strength to respond to any regulatory scrutiny.

We can support from the initial framework design through to an outsourced arrangement of independent customer outcomes monitoring.

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Service Benefits

  • Aligns to the FCA’s supervisory approach providing commonality of understanding.
  • Helps to pre-empt broader regulatory intervention by identifying issues before they crystallise.
  • Provides insights into products and services that are not operating or delivering the outcomes expected.
  • Offers the opportunity to improve customer engagement, trust and business performance.
  • Our outsourced or co-sourced solution can support with internal capacity and capability challenges within your business.

What other benefits exist?

An effective Outcomes Monitoring Framework can deliver more benefits than solely addressing the need for regulatory compliance.

Results from ongoing testing allow firms to continuously learn and improve outcomes for customers, which plays to both firms’ commercial and customer experience agenda as well as the identification, rectification and prevention of customer harm.

Coupled with strong governance arrangements, this helps complete the picture in line with SMF accountability under the Senior Managers and Certification Regime (SM&CR) and ensures Boards are well-placed to approve their annual Consumer Duty Board Report.

Read our latest thinking in this Outcomes Monitoring White Paper.

FAQ

Q: What is Outcomes Monitoring?

A. A mechanism to assess whether customers receive good outcomes, based on their individual circumstances at every stage of the customer journey.

Q: Why is it so important?

A: The FCA’s rules in PRIN 2A.9 require firms to assess, test and evidence the outcomes their customers are receiving. This means firms must identify where they are not meeting the cross-cutting obligations and consequently not acting to deliver good outcomes for customers.

Q: How are good outcomes defined?

A: Ultimately, it’s up to firms to define “what good looks like” aligned to the end-to-end product and customer journey, the nature, scale and complexity of the business and their risk appetite. In doing so, consider where actual or potential customer harm may occur – whether that’s financial or non-financial – which may require corrective action.

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