Consumer Duty - One Year On
Consumer Duty – prioritising your needs and providing the best outcomes for you. 31st July 2024 marked one year since the Financial Conduct Authority introduced the Consumer Duty regulations – a set of rules for financial firms to ensure they deliver good outcomes for their clients.
We’ve just completed our first annual assessment, looking back at everything that we do and making sure we’re doing the best we can. As part of this annual assessment, we reviewed our original implementation plan, considered all the actions we took and documented our successes whilst reflecting on the four consumer outcomes highlighted by the FCA.
As part of our ongoing obligations under the regulation, every year we must review our processes and services in relation to four consumer outcomes:
The impact across the industry already is extremely positive. You may have seen articles in the press regarding an FCA intervention and subsequent clamp down on GAP insurance products, ensuring they are fit for purpose and offering good value to insurance customers. The Consumer Duty has also forced providers who deal in cash savings to look at their response times to base rate increases and has even encouraged a turnaround on the historical business model of a large financial advice firm with regards to their bundled charging structure and exit penalties. It’s not only about cost saving for customers and clients but also about transparency and offering consumers value in the products and services available. As the FCA say ‘This is just the beginning of the journey, not the end’.
At Fairey Associates Ltd, we have welcomed this new regulation and are optimistic about the learning opportunities it will bring in its early years of development across the industry. We pride ourselves on always keeping our clients’ best interests at the very core of all we do, as we always have, and look forward to learning new ways to improve on our services.
Your feedback is of great value to us, after all - nobody can tell us how well we treat our clients like our clients can! Feedback from our annual engagement survey and client satisfaction questionnaires help us ensure our focus is on the right areas. We echo the statement made by the FCA and understand that this is an ongoing obligation to you, to continue to offer you excellent services providing excellent value.
A year on from our acquisition of TRIP, and taking all of the Consumer Duty needs on board, we have decided that now is the time to close TRIP as a standalone business, which involves de-authorising TRIP with the FCA. This deal brought all clients and staff of TRIP over to Fairey Associates Ltd and we have all been working hard together over the last year to ensure the transition is as seamless as possible for all involved. If you were a TRIP client, you’ve probably by now been introduced to your new adviser at Fairey Associates, but if you are yet to meet your new IFA, rest assured this will be happening very soon and we look forward to meeting with you in person. The familiar faces, voices and names from TRIP are very much a part of the Fairey Associates Ltd team now, strengthening our business both in expertise and location.
If you have any questions at all regarding all of this, please do contact us, where either your IFA or one of the support team will be happy to talk to you.
We look forward to seeing you soon!
Risk Warnings
Consumer Duty – prioritising your needs and providing the best outcomes for you. 31st July 2024 marked one year since the Financial Conduct Authority introduced the Consumer Duty regulations – a set of rules for financial firms to ensure they deliver good outcomes for their clients.
We’ve just completed our first annual assessment, looking back at everything that we do and making sure we’re doing the best we can. As part of this annual assessment, we reviewed our original implementation plan, considered all the actions we took and documented our successes whilst reflecting on the four consumer outcomes highlighted by the FCA.
As part of our ongoing obligations under the regulation, every year we must review our processes and services in relation to four consumer outcomes:
- Products and services
- Price and fair value
- Consumer understanding
- Consumer support.
The impact across the industry already is extremely positive. You may have seen articles in the press regarding an FCA intervention and subsequent clamp down on GAP insurance products, ensuring they are fit for purpose and offering good value to insurance customers. The Consumer Duty has also forced providers who deal in cash savings to look at their response times to base rate increases and has even encouraged a turnaround on the historical business model of a large financial advice firm with regards to their bundled charging structure and exit penalties. It’s not only about cost saving for customers and clients but also about transparency and offering consumers value in the products and services available. As the FCA say ‘This is just the beginning of the journey, not the end’.
At Fairey Associates Ltd, we have welcomed this new regulation and are optimistic about the learning opportunities it will bring in its early years of development across the industry. We pride ourselves on always keeping our clients’ best interests at the very core of all we do, as we always have, and look forward to learning new ways to improve on our services.
Your feedback is of great value to us, after all - nobody can tell us how well we treat our clients like our clients can! Feedback from our annual engagement survey and client satisfaction questionnaires help us ensure our focus is on the right areas. We echo the statement made by the FCA and understand that this is an ongoing obligation to you, to continue to offer you excellent services providing excellent value.
A year on from our acquisition of TRIP, and taking all of the Consumer Duty needs on board, we have decided that now is the time to close TRIP as a standalone business, which involves de-authorising TRIP with the FCA. This deal brought all clients and staff of TRIP over to Fairey Associates Ltd and we have all been working hard together over the last year to ensure the transition is as seamless as possible for all involved. If you were a TRIP client, you’ve probably by now been introduced to your new adviser at Fairey Associates, but if you are yet to meet your new IFA, rest assured this will be happening very soon and we look forward to meeting with you in person. The familiar faces, voices and names from TRIP are very much a part of the Fairey Associates Ltd team now, strengthening our business both in expertise and location.
If you have any questions at all regarding all of this, please do contact us, where either your IFA or one of the support team will be happy to talk to you.
We look forward to seeing you soon!
Risk Warnings
- The value of an investment and the income from it could go down as well as up.
- All investing is subject to risk, including the possible loss of the money you invest.
- Past performance is not a reliable indicator of future results.
- Diversification does not ensure a profit or protect against a loss.
- Please remember that all investments involve some risk. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income
- This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice as at 16th September 2024. You are recommended to seek competent professional advice before taking any action.
