The Consumer Duty Journey
As a broker, we understand that the principles and outcomes of the Consumer Duty can be hard to navigate, which is why we want to make sure you have access to information, to help you identify what Brentacre is doing to meet the Financial Conduct Authority’s Consumer Duty requirements.
What is Consumer Duty?
The Consumer Duty regulation objective is to make financial markets perform better for consumers and firms. It puts greater expectations on firms to ensure they can deliver good outcomes to their customers, ensuring that they operate in good faith, avoid customer harm, and focus on clear communication and providing fair value. The Consumer Duty will begin creating a more transparent and responsible market.
Why has Consumer Duty been introduced?
Consumer Duty has been developed to increase the positive relationships between consumers and financial forms. The Financial Conduct Authority has defined the primary aspects of this relationship – products and services, price and value, how consumer understanding is improved and how customer support is maintained and improved, with a view to realising more positive outcomes for customers.
Who does Consumer Duty apply to?
Consumer Duty affects all Financial Conduct Authority approved firms that have a significant impact on, or decide, retail customer outcomes in the UK, including firms who produce or offer products/ services to clients.
How can firms demonstrate compliance with Consumer Duty?
Firms must focus on four key areas to improve the customer journey and outcome:
Products & services: Are the products and services designed to meet the needs, characteristics, and objectives of the target market?
Price & value: Are the products and services fairly priced and deliver value to customers?
Consumer understanding: Are communications easy to comprehend and are understood by all customers in the target market?
Consumer support: Are customers able to understand the benefits and limitations of the products and services?
How Brentacre are adopting the four customer outcomes
Outcome 1 – Products & Services
Brentacre are committed to ensuring the specialist products and services are only available for the customers they were designed for.
- We have a robust product review and management process which reviews whether our products and services are fit for purpose, designed to meet the needs of the intended target market and are distributed appropriately.
- When discussing potential new products, we will consider whether there is any part of the product or process that could cause harm for customers, including those who may be considered vulnerable.
- If issues, or areas for improvement are identified, we will make it a priority to remedy them.
Outcome 2 – Price & Value
Providing fair value is a key focus at Brentacre. The products and services we provide are designed with this in mind.
- We undertake fair value assessments to examine the correlation between the price a customer pays for the product and the service and the benefits they receive from it.
- All products Brentacre offer have been tested and have passed the fair value assessment.
- We will continue to carry out fair value assessments when necessary, evidencing that the products we provide, continue to provide fair value.
Outcome 3 – Consumer Understanding
Brentacre will review customer communications to identify if any are likely to cause harm if they’re misunderstood.
- We request customer feedback to measure whether our communications meet the Consumer Duty requirements and review whether:
- they meet customer expectations,
- they equip the customer with all required information, to make decisions,
- the communication is clear and easy to understand,
- customers understand their responsibilities.
We will update our documents to improve customer outcomes if feedback evidences this.
Outcome 4 – Customer Support
- We will regularly monitor the customer support we provide. Where we identify potential barriers, we will make it a priority to remove them.
- We will design and deliver support, meeting the needs of customers by implementing a flexible approach when providing services to those with characteristics of vulnerability. Making the process as clear and easy as possible.
- All Brentacre employees dealing with customers are suitably trained to recognise individuals who may be in vulnerable circumstances and provide appropriate support.
