FCA highlights its expectations and plans to link STAR and Consumer Duty.
STAR participants should be applauded for their efforts to improve transfer efficiencies. By taking part in the STAR initiative, firms are showcasing their eagerness to deliver good outcomes for their customers and taking positive steps in reducing delays.
STAR has now been accrediting for two years and last month we wrote to the Financial Conduct Authority (FCA) to provide them with an update on STAR’s progress, and to highlight the challenges of recruiting new firms to join the initiative. The FCA reiterated its full support of STAR and has shared their plans to link STAR with the Consumer Duty rules, which were introduced in July 2023.
Some of the key points in its communication:
In addition to this, the FCA has also contacted CEOs and firms as part of its Platform Supervision Strategy. Transfer times continue to be a concern for the FCA, especially in light of the higher standards mandated by the Consumer Duty. Prompt and efficient transfers are crucial for ensuring positive outcomes for consumers.
The FCA has outlined its expectations for firms:
- Firms are expected to engage with STAR and support the principles and actions endorsed by the FCA in connection with the STAR initiative.
- Firms reporting poor transfer times compared to peers, and not already engaged with STAR, will face inquiries about their reasons for non-engagement. The FCA is prepared to act if progress on transfer times is lacking.
With the FCA’s on-going support and a focus on firms evidencing that they’re acting to improve transfer times, the STAR initiative is poised to make even greater strides in enhancing consumers experience of transfers.
To speak to a STAR representative, please email email@example.com.