Effective communication and clear documentation enhance customer understanding and satisfaction. This is a requirement under the Consumer Duty of which one of the outcomes is based on ‘Customer Understanding’. As such, it is imperative that firms adopt the approach to ensure its communications and clear, fair and not misleading.
Below are a couple of tips that can assist meet the Consumer Duty Customer Understanding Outcome:
- Clear and Concise Suitability Letters: Keep suitability letters succinct and relevant to the specific advice given, avoiding excessive standard text that may overwhelm the customer.
- Effective Discussions: Don’t rely solely on Key Facts Illustrations (KFIs) to explain costs and implications. Engage in thorough discussions to ensure customers understand all aspects of the product.
