Learning and Development in 2025

L&D in 2025

It’s now the time of year that most businesses look ahead, planning well-rounded training that covers technical, regulatory and interpersonal aspects of business. This is going to be more critical than ever as we go into 2025. The Consumer Duty has shifted how the FCA supervise, with reviews of the implementation – and staff skills in ensuring good outcomes for customers – at the forefront of its activities.

Training focus for the new year will need to revolve around several key areas shaped by the evolving standards and recent updates to the FCA Handbook and guidance.

Consumer Duty

The Duty was introduced in 2023, but already the FCA has released guidance based on several reviews. The speed of these ‘updates’ to expectations is out of line with what is usual for new regulatory regimes, but reflects the importance the FCA is placing on the Duty to raise standards.

Training programmes need to continue to focus on the four key outcomes and the Consumer Duty Principle, but with good depth around the practice of achieving good customer outcomes and quality customer support.

Firms should remember that the Consumer Duty also impacts on Conduct Rules training; staff at all levels should understand Conduct Rule 6, what it means for Conduct Rule 4, and how to meet the expectations of Rule 6 in their day-to-day work.

Complaints Handling

Complaints training should go beyond the basics and emphasise the importance of quality data recording and analysis. Staff must understand the importance of accurate data to improve customer outcomes and to reduce recurring and systemic issues, resolving them before they affect other customers. Scenario-based training can help staff in all departments – from front line to investigation teams – understand how what they do, and when, impacts on customers.

Training should also take into account developments over the previous year, including FCA enforcement against firms that fail to treat complainants fairly, and for firms that could be affected by the motor finance complaints handling changes, training should set out clearly what those who identify and handle complaints need to do to log and investigate complaints that may be affected.

Data Protection and Information Security

Cyber-attacks and security breaches increase year on year; in 2024 just under 50% of UK businesses reported experiencing an attack or a breach, up from 39% in 2022. This increase in threats, combined with the complexity of data protection law, makes both induction and refresher training in information security and data protection vital for 2025.

Training should cover different types of security attack – almost three quarters of businesses experienced a phishing attempt in 2024 - and physical security incidents are also increasing, up to 28% in 2023 from 20% in 2020.

Safeguarding data, how to respond to breaches, attempts and incidents, and how to maintain compliance with GDPR requirements – especially for handling sensitive financial data – should form the basis of this course.

Fair Treatment of Vulnerable Customers

Building staff awareness of the needs of vulnerable customers has been a priority for a number of years now, particularly following the Guidance for firms on the fair treatment of vulnerable customers in 2021. The new year will see increased focus from the FCA via the Consumer Duty, with firms expected to be proactive in identifying their vulnerable customers and supporting their needs.

Training should include how to pick up on any indication that someone might be vulnerable, how to communicate with empathy to encourage customers to declare their circumstances, and how to decide which of a range of practical support measures will best suit the customer’s circumstances.

Ideally, training should provide practical scenarios to help staff recognise possible vulnerability as potential indicators may not always be obvious.

Financial Difficulties

With the integration of the Tailored Support Guidance into CONC in November 2024, training for staff handling customers in financial difficulties will need to emphasise tailored and informed support approaches in 2025.

Staff will need a clear understanding of the updated CONC requirements and how tailored support guidance is now part of regulatory obligations. Training should emphasise the importance of assessing individual circumstances, adapting support to the customer’s needs, the range of forbearance options the FCA are keen for firms to use more widely, and how to consider suitable options, including repayment options.

The new requirement for early intervention should form a key basis of this training course, with staff trained to recognise early signs of financial stress and engage proactively with them.

Conduct Rules

This year, Conduct Rules training needs to emphasise how to support good customer outcomes, reminding staff that the Consumer Duty has added the sixth Conduct Rule, which creates a higher standard of care for customers.

To meet FCA expectations in 2025, regular, practical training designed by compliance experts is more essential than ever. Effective training isn’t just about teaching the rules, it’s about how to put those rules into practice, giving staff confidence to master the soft skills needed to support customers, as the Consumer Duty requires. Our courses reflect this balanced approach, combining clear guidance on regulatory requirements with realistic scenarios, giving staff the opportunity to test that knowledge before they need to apply it at work. This ensures that firms aren’t just compliant on paper but prepared to genuinely meet the needs of all customers. Our courses are re-designed each year to reflect regulatory and best practice developments.

Need help with your 2025 training? Contact us to discuss further.