Customer Understanding Assessment and Testing Framework Manual & Template

Product Overview

Strengthen your organisation's adherence to the FCA's Consumer Duty by adopting a comprehensive Customer Understanding Assessment and Testing Framework. This detailed manual and template equip financial firms with a structured, customisable approach to evaluate and test communications, ensuring they are clear, timely, and comprehensible to enable informed customer decisions. Updated to align with the latest regulatory developments as of 05 August 2025, including FS25/2 simplifications and the March 2025 understanding review, this resource helps mitigate risks of misinterpretation, promote inclusivity, and enhance customer empowerment.

Delivered as a Microsoft Word document (DOCX) for the manual and a Microsoft Excel spreadsheet (XLSX) for practical templates, this toolkit includes in-depth guidance, checklists, forms, and examples. Ideal for compliance teams, marketing professionals, and senior managers, it facilitates evidence-based testing whilst integrating with broader Duty outcomes for resilient, customer-focused practices.

Key Features

• Structured Framework: In-depth coverage across 6 chapters, including introduction, regulatory background, key principles (e.g., clarity, timeliness, vulnerability), assessment/testing process, monitoring/review/adaptation, and documentation/assurance.

• Regulatory Alignment: Incorporates PRIN 2A.5, FG22/5 (Chapter 6), FS25/2 (February 2025 simplifications for low-impact communications), March 2025 multi-firm understanding review (noting comprehension improvements through segmented testing), and Q1 2025 thematic review on resilient communications.

• Customisable Templates: Excel-based Testing Checklist and Evaluation Form (with blank and example versions) in the XLSX file for streamlined preparation, execution, analysis, and refinement.

• Appendices for Quick Reference: Glossary of terms (Appendix A), referenced policies (Appendix B), FCA resources (Appendix E), and more to aid implementation and compliance.

• Practical Examples: Hypothetical scenarios (e.g., loan promotions, A/B testing on emails) with completed templates and rationale notes for real-world application.

• Version Control & Usage Guide: Embedded instructions for customisation to fit your operations, with notes on proportionality, vulnerability focus, and retention (e.g., 7 years).

• 2025 Insights Integrated: Emphasises inclusive testing, behaviour-aware methods, data-driven refinements, and noted gains like 14-22% in comprehension from FCA reviews.

Benefits

• Achieve Compliance & Reduce Risks: Fulfil FCA mandates for the Consumer Understanding Outcome, with tools for documentation, audits, and remediation to evidence clear communications and avoid sanctions.

• Improve Customer Empowerment: Foster transparent, accessible info that cuts misinterpretations (e.g., 17-20% reductions per 2025 reviews) and supports vulnerable groups through segmented, inclusive testing.

• Optimise Efficiency: Leverage scalable methodologies and simplifications for low-impact vs. high-complexity communications, saving time with ready-to-use checklists and forms.

• Enhance Adaptability: Integrate with other Duty elements (e.g., product governance, support processes) for a cohesive framework, enabling iterative improvements and quick adaptations to changes.

• Promote Accountability: Aligns with SMCR by defining roles for staff, managers, and partners, with clear ties to cross-cutting obligations for ethical, harm-free delivery.

• Drive Measurable Outcomes: Use metrics like comprehension scores (>80% targets) and tech aids (e.g., AI for sentiment) for continuous enhancement and better decision-making.

Who It's For

• FCA-regulated financial services firms, such as banks, insurers, lenders, and investment providers engaging in UK retail activities.

• Professionals including compliance/risk officers, marketing/content teams, communication specialists, senior managers (SMFs), and third-party promoters handling retail interactions.

• Organisations assessing new or existing communications (e.g., promotions, disclosures) across the customer journey, with extensions to closed products per July 2024.

• Suitable for firms focusing on vulnerability-inclusive practices, proportionality, and integration with Duty outcomes like Products/Services or Price/Value.

What's Included

• 1 x Customisable Microsoft Word Document (DOCX): Complete manual with chapters, appendices, guidance, and examples.

• 1 x Microsoft Excel Spreadsheet (XLSX): Templates including Testing Checklist (blank and example), Evaluation Form (blank and example) for practical use.

• Embedded Guidance: Version control, customisation tips, and usage instructions (remove before finalising).

• Digital Delivery: Instant download upon purchase for immediate customisation and deployment.

Licence and Usage Terms

This template is licensed for internal use within your purchasing organisation only. Redistribution, resale, or transfer without prior written consent is prohibited. For full terms, refer to the included Instructions document.

Disclaimer

This manual and template are provided as a supportive tool for regulatory compliance and do not constitute legal or professional advice. Your organisation is responsible for ensuring alignment with FCA regulations, industry standards, and specific legal obligations. Customise to fit your business model and seek professional advice if needed. No liability is assumed for any loss, damage, or regulatory action arising from use.

System Requirements

• Microsoft Word or compatible software (e.g., Google Docs) for the DOCX file.

• Microsoft Excel or compatible software (e.g., Google Sheets) for the XLSX file.

• No additional software required.

Ready to elevate your customer understanding assessments and excel in Consumer Duty compliance? Purchase now and tailor this vital framework to empower your customers and protect your business. For bundling with complementary templates (e.g., Financial Promotion Policy or Vulnerable Customers Policy), explore our compliance toolkit options.