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Consumer Duty compliant letters: what to automate safely
Consumer Duty compliant letters are those that are clear, fair, and not misleading, with evidence of customer understanding where required; automation helps by standardising good disclosures and audit trails while humans approve client-facing wording.
Clarity and plain language
Templates can enforce shorter sentences, consistent definitions of risk, and standard explanations of charges. AI drafting should inherit those constraints rather than improvising regulatory text.
Evidence and audit trails
Regulators care that firms can show what was sent, when, and on what basis. Automated systems should store version history, source data snapshots, and reviewer identity for each outbound letter.
Fair value and conflicts
Where letters discuss costs, service scope, or product replacement, automation should pull numbers from the same systems advisers rely on in advice — so marketing-style rounding does not creep into regulated correspondence.