The Financial Conduct Authority (FCA) has urged firms to ensure they are ready for the 31 July Consumer Duty deadline, as discussions around the impact of the new rules on pensions continue within the industry.

With fewer than 90 days to go until the start of the Consumer Duty, the FCA emphasised the need for firms to take action to prepare, with FCA executive director, consumers and competition, Sheldon Mills, stating that providers “still have time, but only just”.

In a speech, Mills also warned that those firms who ignore the duty or who pose the most harm can expect swift action, emphasising that FCA will take “robust action” where needed.

“Our supervisory and enforcement approach will be proportionate to the harm – or risk of harm – to consumers, with a sharp focus on outcomes," he stated.

“We will prioritise the most serious breaches and act swiftly and assertively where we find evidence of harm or risk of harm to consumers. In some cases, firms can expect us to take robust action, such as interventions or investigations, along with possible disciplinary sanctions.”

Mills also acknowledged the work already underway in this area, noting that since the final rules and guidance were published in July last year, the financial services industry has worked with the regulator to meet parliament’s will to implement the new Consumer Duty.

He continued: “The 52 million financial services consumers in the UK rely on the sector to deliver good outcomes, and should be even better protected from harm, particularly in these challenging economic times.

“If applied correctly by firms, the Consumer Duty should help firms retain and attract customers and will enhance the competitiveness of our financial services sector.

“The duty will mean that consumers should receive communications they can understand, products and services that meet their needs and offer fair value, and they get the customer support they need, when they need it.”

Whilst the Consumer Duty is only applicable for the retail financial sector, industry experts have suggested that it will influence workplace pensions, with Sackers partner, Helen Ball, suggesting that “in terms of ‘big bang’, [Consumer Duty] was always going to be really important”.

And work on the Consumer Duty is already underway within the pensions industry, as the Pensions Administration Standards Association (Pasa) recently announced plans to launch a Consumer Duty working group looking at the impact of the new rules.

Pasa director, Chris Tagg, announced the plans for the working group at the association's Annual Conference as part of a panel on the new Consumer Duty, with industry experts suggesting that the rule change will lead to a "levelling up" in industry standards and communications.

Speaking on the panel, Herbert Smith Freehills managing partner of employment, pensions and incentives (EPI), Samantha Brown, clarified that whilst there isn't certainty around the new requirements yet, as "we don't know what the FCA will do in practice" or what good outcomes will look like for all savers, showing a narrative around the new rules and how providers are adapting will be key.

"Showing that senior people are thinking about that and thinking how they will measure it and adapt to [the Consumer Duty] is really important, and having the conversation will be a big part of the answer" she continued.

"Albeit that there are currently inconsistencies and differences in the way that different bits of the pensions world are regulated and where the duty applies, but don’t for one second, think that that's going to be the case here.

"I think there will be a general levelling up right across the industry, which is is a good thing. That will take some take some time, but don't rest on your laurels."'

The panel also highlighted some specific areas where the duty may extend, including buyout exercises.

"Probably what will happen is that communications all the way through the process will start being at a much more detailed, more Consumer Duty level so that the individual members have a higher level of understanding all the way through the process," Brown suggested, clarifying however, that she wouldn't expect that from 31 of July.

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