The warning followed a review of a sample of implementation of plans.
The FCA said it found some disappointing results, and cited firms that had plans lacking in detail, which have been too easily approved, or the appointed consumer duty champion has not had the relevant experience to review and implement the new policy.
FCA Executive Director of consumers and competition, Sheldon Mills, goes on to say:
"The Consumer Duty will bring about a step change in the way financial services firms treat their customers and we welcome the work firms are doing to implement it. Given the scale of the reform, we recognise that some firms need to make significant changes. For firms which are further behind in making the necessary changes, there is time to put that right and for them to show they are acting in the spirit of the new Duty."
The regulator said it wants firms to prioritise areas that will make the biggest impact on consumer outcomes.
It also asked they share information and work with commercial partners.
However, the review also praised some progress and said some companies had "developed robust governance frameworks… with clear executive accountability for delivery and board oversight".
The regulation includes a new Consumer Principle that requires firms "to act to deliver good outcomes for retail customers" and rules providing greater clarity on the regulator's expectations under the new principle.
The regulator has also provided rules and guidance setting more detailed expectations for firm conduct in four areas that represent key elements of the firm-consumer relationship: the governance of products and services; price and value; consumer understanding; and consumer support.
The regulator has flagged today that you must be clear about who is leading the programme, with clear timelines and information on how the duty will be embedded within company culture.
Sheldon Mills said firms will see the benefits of the regime as it will provide "increased trust in the sector, more flexibility to innovate and in time fewer rule changes".
