FCA’s Mills reveals his P2P roots in consumer duty speech
Sheldon Mills, executive director of consumers and competition at the Financial Conduct Authority (FCA), has revealed his own surprising roots in peer-to-peer lending.
In an speech on consumer protection, delivered at the Financial Services Summit, Mills (pictured) shared a story from his childhood in which he demonstrated a strong grasp of the core principles of P2P lending.
“I remember the day I opened my first bank account,” he said.
“I was six or seven years old, visiting my local branch with my grandmother. I was given a calculator, ruler, notepad and pencil.
“I used the notepad to record how much of my pocket money I loaned to my uncle and, of course, the interest I would charge him!”
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Mills did not expand on the value of this loan, the interest rates charged, or the risk profile of his borrower and likelihood of default.
He used this anecdote to demonstrate the importance of the customer journey as lenders across the country prepare for the new consumer duty.
“We want every interaction with financial services to be like this,” he said.
“Consumers should come away satisfied and confident; their needs met and understanding the product or service they’ve got. And with a ruler, calculator, notepad and pen, of course…”
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The new consumer duty aims to improve how regulated firms – including P2P lending platforms – serve customers. For new and existing products or services that are open to sale or renewal, the rules come into force on 31 July 2023. For closed products or services, the rules come into force on 31 July 2024.
Ahead of these dates, all regulated firms must be able to show the FCA that they are selling suitable products at a fair price, and providing good standards of customer service.
In his speech, Mills warned that the new consumer duty “will be a significant shift in what we expect of firms.”
“It means making lasting changes to culture and behaviour to consistently deliver good outcomes,” he added.
“It means putting customers in a position where they can make informed decisions; where they are presented with suitable products and services for their individual needs; and where they receive fair value for those purchases. The duty will require all firms, whether designing, selling or advising on products and services, to put their customers’ needs first.
“Trust and confidence in financial services is key and achieving good outcomes for consumers will help do this.”
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