With The FCA Finding That Some Firms Don’t Pass The Fair Value Test, Are You Ready For The 31 July Deadline?

Date: 25th May 2023

Author: Linda Preston-Todd 

The findings reveal that, although many firms have taken some steps towards Consumer Duty requirements, many firms still have a way to go to be able to evidence that they are meeting these.

As reported in Professional Adviser, FCA Executive Director Consumer & Competition Sheldon Mills commented: "The findings of our review suggest that some firms may not be able to give us adequate evidence for why their products or services provide fair value."
 

Evidence, evidence, evidence

Consumer Duty is all about being able to demonstrate that the way you operate is fully in line with the new regulatory requirements. 

So not only do you need to believe your services are priced fairly, in-line with their value, but you need to be able to demonstrate this as well. If you can’t, you could be at risk of penalisation by the FCA once the 31 July deadline passes.

When it comes to demonstrating fair value for example, here at Bankhall we recommend firms conduct a full review of their target markets and assess the true cost of service delivery across their propositions, to produce a pricing rationale document. 

To help you do this, we’ve created a series of guides and templates that you can follow step-by-step, designed to give you confidence in your approach to Consumer Duty.

All this and more is available for Bankhall clients to access via the Consumer Duty Hub on Bankhall Online. If you’re not a Bankhall client but would like access to some of our practical resources, book a free, no-obligation Consumer Duty consultation to discuss the support available and how this could work for you.

Think you’re ready for Consumer Duty? Book a validation day to find out.

If your firm has already started to review and document its policies and processes in readiness for Consumer Duty, and you want to put them to the test before the deadline, you could benefit from a Consumer Duty validation day.

When you book your validation day, one of Bankhall’s Regulatory Specialists will spend a day in your business – either virtually or face-to-face, whichever works best for you – to take a deep-dive into your Consumer Duty preparations.

You’ll then receive a comprehensive report that outlines any gaps you may have, as well as highlighting the areas where your firm is well-prepared. So you can enjoy confidence in your Consumer Duty preparations, knowing you won’t be penalised by the FCA following the 31 July deadline. 

Find Out More And Book Your Validation Day Now →