Is your firm ready to deliver on all four of the FCA’s new Consumer Duty outcomes?
Forming the cornerstone of its three-year strategy and a key element of its work to set and test higher standards, the UK’s FCA (Financial Conduct Authority) will introduce the Consumer Duty on 31 July 2023.
The Consumer Duty lays out four outcomes where some or all will be relevant, depending on the type of firm. Firms must take action to meet the following Consumer Duty outcomes for:
- products and services,
- price and value,
- consumer understanding and
- consumer support.
Firms will need to evidence whether these outcomes are being met and are required to share information and work closely to ensure they deliver good outcomes to customers.
What Fund Managers need to do
It’s now more than just a tick box exercise for Fund Managers with policy statement PS22/9 taking it further than needing to ‘Treat Customers Fairly’.
Firms must act to deliver relevant products, ensure good outcomes for retail customers and avoid causing foreseeable harm.
What Fund Distributors need to do
Fund Distributors must obtain sufficient information to understand the value assessment and whether any remuneration it receives would result in the product no longer providing fair value. Distributors must design an appropriate distribution strategy, provide appropriate customer service standards and regularly monitor how the platform is used in practice.
How FE fundinfo can help you to comply with Consumer Duty
FE fundinfo, in partnership with Door, have created a solution that covers all four of the required outcomes from the FCA.
Door’s existing technology enables the information exchange between fund distributors and fund managers, which is now leveraged for the Consumer Duty requirements. This capability, coupled with data automation provided by FE fundinfo, enables firms to provide Consumer Duty data to their clients.
Data can be automatically pulled into the Consumer Duty Question Set in Door, providing robust, timely information to distributors, whilst saving asset managers from repeatedly inputting data manually.
With FE fundinfo data leveraged by Door's technology, we help streamline the process of gathering and analysing large volumes of reporting data.
Understand the risks
Quickly understand Consumer Duty risks within your entire fund holdings and identify and ‘deep dive’ into problem areas.
Our data integration combined with Door's due diligence solution empowers you as a fund manager to confidently distribute data and as a fund distributor to seamlessly extract the necessary information to comply with Consumer Duty.
Key Features of FE fundinfo's Consumer Duty solution
A Single Utility
Distributors are able to request consumer duty information from Fund Managers and Fund Managers can respond at scale to these questions.
Responses can be tracked and firms can monitor which products raised flags, for which questions, and how frequently, look at data on aggregate, or deep dive into the details.
Content is contained in one central repository, fully searchable and comparable with workflows that are automated, efficient, audited and compliant due to the data automation partnership between FE fundinfo and Door.
Dissemination of EMT data
Our Consumer Duty solution helps you respond to the first outcome: products and services, via our EMT collection and dissemination service.
Submit your EMT data through our Data Partner Portal for validation and distribution to relevant parties, including platforms, vendors, and fund managers. The data we collect and distribute is then made accessible via the Door solution.
Communicate to your end investors and distribute your Assessment of Value reports with ease, leveraging our Document Dissemination service which instantly transmits your regulatory and marketing documents to your chosen recipients.
Further bolster your document distribution via FE Analytics, where more than 3,900 advice firms can view and download your fund documents, along with access to EMT v4.1 data to complete fair value assessments of their advice services, and therefore meet the ‘Price and Value’ outcome.
Insights from FE fundinfo
FE fundinfo Regulatory Manager, Mikkel Bates discusses the FCA’s Consumer Duty, how it differs from the ‘Treating Customers Fairly’ principle and how it is definitely not business as usual for Asset Managers.
In July 2022, the Financial Conduct Authority (FCA) set out the final rules and guidance for a new Consumer Duty; forming the cornerstone of its three-year strategy and a key element of its work to set and test higher standards.