Customer Duty, Vulnerable Customers & Complaints Policy (FCA) 

(Public) 

Introduction 

Calmony is committed to upholding the highest standards of consumer protection and fair treatment in our provision of comprehensive collecting and payment solutions to Small and Medium-sized Enterprises (SMEs). This Consumer Duty Policy outlines our approach to ensuring good outcomes for our customers across our range of services, including business bank accounts, client and safeguarding bank accounts, card and open banking payment services, Direct Debits collections, and bulk faster payment services. 

Regulatory Framework 

This policy has been developed in accordance with the Financial Conduct Authority's (FCA) Consumer Duty requirements as outlined in PS22/9 and the related Handbook provisions in PRIN 2A. The Consumer Duty consists of: 

1. A Consumer Principle that requires firms to "act to deliver good outcomes for retail customers" 

1. Three Cross-cutting Rules:  

1. Act in good faith 

1. Avoid causing foreseeable harm 

1. Enable and support customers to pursue their financial objectives 

1. Four Outcomes related to:  

1. Products and services 

1. Price and value 

1. Consumer understanding 

1. Consumer support 

Our policy integrates these requirements throughout Calmony’s operations to ensure we meet both the letter and spirit of the regulations. 

Scope 

This policy applies to all aspects of our business operations and interactions with SME customers, from product design, marketing, terms and conditions, customer support and complaint handling. 

Target Market 

Our target market consists primarily of SMEs, specifically small and medium-sized enterprises that require banking and payment financial services solutions. Within this category, we recognise micro-enterprises (fewer than 10 employees) may be particularly vulnerable due to limited resources and expertise.  

Our Fair Value and Target Market assessments (detailed in Appendix A) provide comprehensive analysis of how Calmony’s products and services meet the needs of these customers. 

Key Principles 

Fair Value 

We are committed to providing products and services that offer fair value to our SME customers. This means: 

• Regularly reviewing our pricing structure to ensure it remains competitive and transparent by comparing to the total costs of using disconnected multiple services. 

• Clearly communicating all fees and charges associated with our services and how they compare when buying services from multiple unconnected suppliers. 

• Offering combined products and services that meet the genuine needs of SMEs. 

• Conducting annual Fair Value assessments (as detailed in Appendix A) that analyse our offerings against high street banks benchmarks, customer feedback, and cost-benefit analyses. 

Suitability and Appropriateness 

We will ensure that our products and services are suitable for the SMEs we serve by: 

• Continue to provide clear information about product features and limitations, particularly highlighting the requirement on AML/KYC checks of Payees, which is not standard practice of high street banks. 

• Offering guidance on choosing the most appropriate limits in card payments, maximum single and daily payment limits, and maximum Direct Debit collection limits in conjunction to the scale of their business (to reduce the impact of a clawback claim and liquidity event against the business). 

• Implementing a suitability application process during onboarding to ensure our services align with the customer's needs and sophistication level. 

Clear Communication 

We are committed to clear, fair, and not misleading communication. This includes: 

• Using plain language in all our marketing materials and product documentation. 

• Providing easily accessible and understandable terms and conditions, with a dated overview of updates to the terms and conditions. 

• Regularly sense checking of customer communications by Calmony support team and company MLRO officer. 

Customer Support 

We will provide customer support that is inline with groups core value of 'having clients interest at heart' to ensure that SMEs can effectively, safely and financially afford to use our services: 

• By providing email and video call customer support, that works to a service level of responding to 80% of requests within 24 hours (business days only). 

• Providing comprehensive walkthrough (explainer video and screen share) on how to safely use the Calmony application and key features like Direct Debit collections. 

• To act quickly in the event of potential fraud and financial crime. 

• Monitoring customer support metrics including response times, resolution rates, and customer satisfaction to continually improve our service. 

Software & Service Governance 

With the support of Constellation Software Inc central IT and security department, we will maintain a rigorous software and service governance framework to ensure our services meet the needs of SMEs: 

• Regularly reviewing and updating our software product offerings, including building in safety measures to protect against AML and financial crime. 

• Monitoring software and service performance, including annual cyber security testing, infrastructure disaster recovery testing and software uptime. 

• Ensure our SME letting agent clients are equipped to comply with the UK's Office of Financial Sanctions Implementation (OFSI) new financial sanctions reporting obligations, from the 14th May 2025 deadline. 

• Conducting quarterly service reviews with detailed reports to Volaris board (subsidiary of Constellation Software Inc) and management team. 

Identifying and Supporting Vulnerable Customers 

Definition and Identification 

In accordance with FCA guidelines, we define vulnerable customers as those who, due to their personal circumstances, are especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care. For Calmony, vulnerable customers primarily include: 

• Micro-enterprises with limited financial expertise or resources 

• Start-up businesses in their first two years of operation 

• Businesses experiencing financial difficulties 

• Businesses operated by individuals with health conditions or life events affecting their capacity 

We identify vulnerable customers through: 

1. Application Assessment: During application process, we gather information about business size, financial experience, and potential vulnerability indicators. 

1. Ongoing Monitoring: We utilise data analytics to identify patterns that may indicate vulnerability, such as:  

1. Sudden changes in transaction patterns, including Client Money Protection (CMP) red flags 

1. Payment difficulties in both failed payments to their customers and failure to pay Calmony’s monthly invoices 

1. Increased support requests including increased requests to cancel payments 

1. Staff Observations: All Calmony support staff review this policy and test vulnerable customer situations to help train them to recognise signs of vulnerability during interactions. 

Support Measures 

We recognise that some SMEs may be in vulnerable circumstances. We will: 

• Hold clawback funds when volumes and amounts of Direct Debit collections increase the probability of a claim that would need to be paid back immediately. 

• Train our staff to identify and support clients of SME who could become vulnerable customers, for example a distressed business. 

• Offer flexible solutions for businesses facing financial difficulties, for example by providing a payment plan for our fees. 

• Provide additional support and guidance where needed, including:  

• Simplified information 

• Extended consultation time for decision-making 

• Direct access to MLRO officer for complex situations 

• Referrals to business support organisations or CMP schemes where appropriate 

Supporting Clients with Vulnerable End-Users 

While we don't directly engage with our clients' end-users (e.g., tenants, landlords and contractors), we take steps to ensure our services help clients treat their vulnerable customers appropriately: 

• Designing our systems to accommodate flexibility in payment arrangements 

• Offering guidance on handling sensitive situations with vulnerable end-users (we have experience in company of running letting agency business and dealing with tenants in debt) 

Financial Crime Prevention 

We also recognise that some SMEs may abuse the software and banking services to facilitate financial crime. We will: 

• Monitor for patterns of a client processing high levels of transactions and Direct Debit mandate setups and collections. 

• Require the setup of our electronic Direct Debit mandate to require selfie and ID photo capture to look for patterns of use of stolen bank account details being used. 

• With application, review adverse media and in suspected high risk applications require a disclosure check (DBS) on the individual before approving Calmony application (pre application to Griffin and Modulr application). 

• Work with our Calmony staff to identify where potential customers may commit financial crime with their customers. 

• Continue to act on reports of suspicious activity from our customers, customer.. 

Data Protection and Security 

We are committed to protecting our customers' data, and their customers data and ensuring the security of their personal identifiable information and financial transactions, by: 

• Implementing robust cybersecurity measures. 

• Requiring Single Sign On (SSO) and Two Factor Authorisation (2FA) to access the software. 

• Requiring a second separate 2FA code to authorise a payment. 

• Carrying out an annual PenTest and immediately fixing the high and medium risks that have been identified. 

• Following audits and reviews from our corporate clients and financial and banking services suppliers, implementing data protection and security systems, process and training improvements based on the audit and review findings. 

• Complying with all relevant data protection regulations. 

Complaint Handling 

We will handle complaints promptly, fairly, and effectively, by: 

• Removing the complaint procedures hidden in terms and conditions and privacy policy to a dedicated page on Calmony’s websites. 

• Providing clear instructions on the process with the ability to submit a complaint via the website. 

• Acknowledging complaints within 24 hours between Monday to Friday (excluding bank holidays). 

• Aiming to respond and resolve complaints within 15 days (business days). 

• Review learning from complaints to improve our services, training and process. 

• Maintaining detailed records of all complaints and their resolutions by recording in group Risk Register. 

• Conducting root cause analysis of recurring issues to drive systemic improvements. 

Governance and Oversight 

Consumer Duty Champion 

The group's CEO and MLRO, Glyn Trott, serves as our Consumer Duty Champion at board level, with responsibilities including: 

• Overseeing implementation of the Consumer Duty across all business areas 

• Ensuring Consumer Duty considerations are integrated into strategic decisions 

• Providing regular reports to the board on Consumer Duty compliance 

• Leading the annual review of this policy and its effectiveness 

• Advocating for customer interests in all board-level discussions 

Monitoring and Review 

We will regularly monitor our compliance with this policy and review it annually to ensure it remains effective and up-to-date through: 

• Annual policy review trigger by our Banking partners Griffin Bank and Modulr. 

• Monthly report on Consumer Duty events, implications and reviews with Griffin and Modulr’s monthly MI reporting  

• Monthly capture and reporting of customer feedback and complaints data into improvement processes with Griffin and Modulr’s monthly MI reporting 

Staff Training 

All staff members will receive regular training on this Consumer Duty Policy and Vulnerable Customer, and the practical application in their roles. We ensure training is completed and understood by: 

• Issuing this policy to all staff via HR system, which requires a signature to confirm read and understand the policy and updates 

• Check knowledge within Calmony support by reviewing real applications and preventing financial crime reports to verify comprehension 

• Conducting Calmony support team discussions about specific Consumer Duty challenges and solutions, and publish insights and reviews on company Teams channel 

• Including practical examples of "easter egg" statements within the policy that staff must identify (such as "I have read and understood this policy" statements in unexpected places) to verify thorough reading, with verification tracked by our training management system 

Operational Implementation 

The implementation of Consumer Duty principles across Calmony’s operations includes: 

• Cross brands and departmental sharing of knowledge focusing on each of the four outcomes 

• Consumer Duty impact review for all new products and services 

Reporting and Accountability 

The group's MLRO, Glyn Trott, is ultimately responsible for ensuring compliance with this policy, with groups Senior Operations Manager Emma Jackson applying a 4-eye procedure on confirming group MRLO has complied to this policy, and record confirmation in groups risk register on dedicated teams channel and ISO Eramba system. 

The group's MLRO will provide quarterly and annual MRLO reports on our adherence to these principles, including: 

• Consumer outcome metrics 

• Vulnerable customer statistics and support provided 

• Complaint data and resolution timelines 

• Staff training completion rates 

• Identified areas for improvement 

By implementing this Consumer Duty Policy, Calmony aims to follow FCA best practice and recommended standards for customer-centric service, fostering trust and long-term relationships with our SME customers. 

Appendix A: Fair Value and Target Market Assessment 

Fair Value Assessment 

1. Product/Service Description 

Calmony provides comprehensive collecting and payment solutions to SMEs, including business bank accounts, client and safeguarding bank accounts, card and open banking payment services, Direct Debits collections, and bulk faster payment services. 

2. Target Market Analysis 

Our services are designed for SMEs, with particular focus on those requiring integrated payment solutions. Our target customers range from micro-enterprises to medium-sized businesses who benefit from our consolidated service approach. 

3. Pricing Structure and Rationale 

Our pricing structure is based on: 

• Competitive market analysis 

• Cost of service provision 

• Value added through integration and time savings 

• Simplified fee structure compared to using multiple providers 

We conduct quarterly pricing reviews to ensure our services maintain fair value for customers. 

4. Competitor Benchmarking 

We regularly assess our pricing and services against key competitors, including: 

• Traditional banking providers 

• Fintech payment solutions 

• Specialised Direct Debit processors 

• Integrated payment platforms 

Our current positioning provides approximately 15-20% cost savings compared to using separate providers for each service element. 

5. Customer Feedback Analysis 

Customer satisfaction key value drivers identified include: 

• Certainty of opening and keeping a client bank account 

• Time savings from integrated platform 

• Reduced administrative overhead 

• Enhanced security features 

• Dedicated customer support 

6. Distribution Strategy Assessment 

Our services are distributed through: 

• Direct website sales channel 

• Partner recommendations 

• Online application form 

Each channel includes appropriate safeguards to ensure customers understand our service proposition and associated costs. 

7. Fair Value Conclusion 

Based on the above analysis, we conclude that our services provide fair value to our target market by: 

• Simplifying complex payment processes 

• Reducing overall costs compared to multiple providers 

• Providing enhanced security and compliance features 

• Delivering responsive customer support 

• Offering transparent pricing with no hidden fees 

Target Market Analysis 

1. Product/Service Description 

Calmony's payment solutions integrate multiple financial services that SMEs typically need to source from separate providers, including account management, payment processing, and Direct Debit collection. 

2. Intended Customer Segments 

Primary target segments include: 

• Micro-enterprises (1-9 employees) 

• Small businesses (10-49 employees) 

• Medium-sized enterprises (50-249 employees) 

With particular focus on: 

• Service businesses with recurring rent collection and payment needs 

• Property management companies 

• Property related professional service firms 

3. Customer Needs Addressed 

Our services address the following key customer needs: 

• Streamlined payment processing 

• Reduced administrative burden 

• Enhanced cash flow management 

• Simplified compliance with financial regulations 

• Secure transaction processing 

• Consolidated financial reporting 

4. Customer Risk Assessment 

Potential risks to customers include: 

• Dependency on integrated platform 

• Learning curve for new systems 

• Potential disruption during service upgrades 

Mitigation measures include: 

• Comprehensive onboarding support 

• 24-hour notice for planned maintenance 

• Backup payment processing options 

• Staged implementation options for larger clients 

5. Distribution Channel Appropriateness 

Our distribution channels have been designed to ensure: 

• Clear information provision at all stages 

• Appropriate needs assessment before onboarding 

• Opportunity for customers to ask questions 

• Transparency regarding all fees and limitations 

• Access to product demonstrations (teams calls walkthroughs and support videos) 

6. Marketing and Communication Strategy 

Our marketing approach ensures: 

• Clear, jargon-free communication about services 

• Realistic representations of potential benefits 

• Transparency about costs and limitations 

• Educational content to support informed decisions (e.g. OFSI) 

• Regular updates about software upgrades and service enhancements  

7. Exclusion Criteria and Rationale 

Our services may not be suitable for: 

• Very large enterprises with complex payment needs 

• Businesses with predominantly international transactions 

The rationale for these exclusions is to ensure we focus on customers for whom our services provide genuine value and appropriate risk management. 

Review History 

Source	Author	Date	Description
Modulr review	Glyn Trott	07/07/2023	Following review with Modulr, drafted and implemented company Customer Duty policy
Modulr review	Glyn Trott	10/01/2025	Following a review by Modulr and identify a high risk with a weak CD and VC policy, reviewed and updated
Modulr review	Glyn Trott	13/07/2025	Change the 30 days to 15 business days to respond to a complaint.

Version History 

Version	Author	Date	Description
1.0	Glyn	07/07/2023	Formalised Customer Duty policy
2.0	Glyn	10/01/2025	New section of VC and further detail with implementing CD
3.0	Glyn	10/05/2025	Comprehensive update after review and recommendations and regulatory requirements by Modulr

 

 

Record: version 2.0: Do not use 

Introduction 

Calmony is committed to upholding the highest standards of consumer protection and fair treatment in our provision of comprehensive collecting and payment solutions to Small and Medium-sized Enterprises (SMEs). This Consumer Duty Policy outlines our approach to ensuring good outcomes for our customers across our range of services, including business bank accounts, client and safeguarding bank accounts, card and open banking payment services, Direct Debits collections, and bulk faster payment services. 

  

Scope 

This policy applies to all aspects of our business operations and interactions with SME customers, from product design, marketing, terms and conditions, customer support and complaint handling. 

  

Key Principles 

Fair Value: We are committed to providing products and services that offer fair value to our SME customers. This means: 

• Regularly reviewing our pricing structure to ensure it remains competitive and transparent by comparing to the total costs of using disconnected multiple services. 

• Clearly communicating all fees and charges associated with our services and how they compare when buying services from multiple unconnected suppliers. 

• Offering combined products and services that meet the genuine needs of SMEs. 

Suitability and Appropriateness: We will ensure that our products and services are suitable for the SMEs we serve by: 

• Continue to provide clear information about product features and limitations, particularly highlighting the requirement on AML/KYC checks of Payees, which is not standard practice of a bank. 

• Offering guidance on choosing the most appropriate limits in card payments, maximum single and daily payment limits, and maximum Direct Debit collection limits in conjunction to the scale of their business (to reduce the impact of a clawback claim and liquidity event against the business). 

Clear Communication: We are committed to clear, fair, and not misleading communication. This includes: 

• Using plain language in all our marketing materials and product documentation. 

• Providing easily accessible and understandable terms and conditions, with a dated overview of updates to the terms and conditions. 

Customer Support: We will provide customer support that is inline with groups core value of ‘having clients interest at heart’ to ensure that SMEs can effectively, safely and financially afford to use our services: 

• By providing multiple channels of email and video call customer support, that works to a service level of responding to 80% of requests within 24 hours (business days only). 

• Providing comprehensive walkthrough (explainer video and screen share) on how to safely use the Calmony application and key features like Direct Debit collections. 

• To act quickly in the event of potential fraud and financial crime. 

Software & Service Governance: We will maintain a rigorous software and service governance framework to ensure our services meet the needs of SMEs: 

• Regularly reviewing and updating our software product offerings, including building in safety measures to protect against AML and financial crime. 

• Monitoring software and service performance, including annual cyber security testing, infrastructure disaster recovery testing and software uptime. 

• Ensure our SME letting agent clients are equipped to comply with the UK's Office of Financial Sanctions Implementation (OFSI) new financial sanctions reporting obligations, from the 14th May 2025 deadline. 

Vulnerable Customers: We recognise that some SMEs may be in vulnerable circumstances. We will: 

• Hold clawback funds when volumes and amounts of Direct Debit collections increase the probability of a claim that would need to be paid back immediately. 

• Train our staff to identify and support clients of SME who could become vulnerable customers, for example a distressed business. 

• Offer flexible solutions for businesses facing financial difficulties, for example by providing a payment plan for our fees. 

• Provide additional support and guidance where needed. 

We also recognise that some SMEs may abuse the software and services to facilitate financial crime.  We will: 

• Monitor for patterns of a client processing high levels of transactions and Direct Debit mandate setups and collections. 

• Require the setup of our electronic Direct Debit mandate to require selfie and ID photo capture to look for patterns of use of stolen bank account details being used. 

• With application, review adverse media and in suspected high risk applications require a disclosure check (DBS) on the individual before approving Calmony application (pre application to Griffin and Modulr application). 

• Train our staff to identify where potential customers may commit financial crime with their customers. 

• Continue to act on reports of suspicious activity from our customers, customer. 

• Provide additional support and guidance to our customers, customer where needed. 

Data Protection and Security: We are committed to protecting our customers' data, and their customers data and ensuring the security of their personal identifiable information and financial transactions, by: 

• Implementing robust cybersecurity measures. 

• Requiring Single Sign On (SSO) and Two Factor Authorisation (2FA) to access the software. 

• Requiring a second separate 2FA code to authorise a payment. 

• Carrying out an annual PenTest and immediately fixing the high and medium risks that have been identified. 

• Following audits and reviews from our corporate clients and financial and banking services suppliers, implementing data protection and security systems, process and training improvements based on the audit and review findings. 

• Complying with all relevant data protection regulations. 

Complaint Handling: We will handle complaints promptly, fairly, and effectively, by: 

• Removing the complaint procedures hidden in terms and conditions and privacy policy to a dedicated page on the group's three websites. 

• Providing clear instructions on the process with the ability to submit a complaint via the website. 

• Providing clear information on how to make a complaint. 

• Acknowledging complaints within 24 hours between Monday to Friday (excluding bank holidays). 

• Aiming to respond and resolve complaints within 15 business days. 

• Review learning from complaints to improve our services, training and process. 

Monitoring and Review: We will regularly monitor our compliance with this policy and review it annually to ensure it remains effective and up-to-date. 

  

Staff Training: All staff members will receive regular training on this Consumer Duty Policy and Vulnerable Customer, and the practical application in their roles.  We ensure training is completed and understood by; 

• Issuing the policy to all staff via HR system, which requires a signature to confirm read and understand the policy and updates 

• Hide ‘easter egg’ statements in the policy (inline with our company value to enjoy ourselves) which will be personally signed by groups MLRO officer, Vladimir Putin 

  

Governance: The groups CEO and MLRO, Glyn Trott is ultimately responsible for ensuring compliance with this policy, with groups Senior Operations Manager Emma Jackson applying a 4eye procedure on confirming group MRLO has complied to this policy, and record confirmation in groups risk register on ISO Eramba system.  

The group's MLRO will provide quarterly and annual MRLO reports on our adherence to these principles. 

By implementing this Consumer Duty Policy, Calmony aims to follow FCA best practice and recommended standards for customer-centric service, fostering trust and long-term relationships with our SME customers.