As I’m sure you’re aware, the financial services industry is heavily regulated by the Financial Conduct Authority. Keeping up to date with guidance and advice can be time consuming but ultimately it means that we protect our clients and help them to achieve their financial goals.
Last year new regulations came into place known as the Consumer Duty. These were designed to set higher and clearer standards of protection across the financial services industry covering all services including pensions, investments, savings, credit cards, loans, and mortgages.
The Consumer Duty was designed with one main overarching Consumer Principle which is that all firms must act to deliver good outcomes for all customers. In order to achieve this all financial planners must implement their new cross-cutting rules and these in summary are to:
- Act in good faith
- Avoid unforeseeable harm
- Ensure and support clients to pursue their financial objectives
So what does this mean for you?
It means you will get the support you need when you need it, communications you understand and products and services that meet your needs and offer fair value.
The Consumer Duty offers a greater level of protection and service for all customers and this will be delivered by adhering to the Consumer Duty’s four outcomes. These are:
- Products and services
Ensuring products and services meet client needs and objectives.
- Price and value
Ensuring equal value for all customers with an emphasis not only on cost but also a reasonable correlation between the price paid for a product or service and the overall benefits for the consumer.
- Consumer understanding:
Firms are required to support customers in making informed decisions about the products and services they require. Customers will therefore gain a more comprehensive understanding of services and recommended products.
- Consumer support:
Firms must provide a high level of customer support throughout the relationship. This must be delivered in a way that meets the needs of the customer and mitigates any risk to them throughout the lifecycle of the product.
In summary although this is a detailed process and one of the biggest regulatory overhauls within the last ten years, it will ensure all financial services firms will be offering the very best products and services.
Here at Strategic Solutions we always welcome changes to regulations that improve the services we offer and ensure we’re providing the most up to date and relevant advice.
If you want to find out more, feel free to contact us at info@ssfs.co.uk or speak to your financial planner who will be happy to discuss this with you.
