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Part 1 – Consumer Duty – what does it all mean and how does it fit in with research and suitability processes?

5 min read 6 Oct 22

Session: 6 October 2022

On this session, hosted by Pru’s Vince Smith-Hughes and Andy Nash, they were joined by special guests Mark Polson and Alison Gay from the lang cat, a leading independent platform.

They looked at what the Consumer Duty means for advisers/advisory firms overall, and what else might be needed when it comes to research and suitability. For example, how does it affect any Centralised Investment Proposition (CIP) and Centralised Retirement Proposition (CRP) you have in place?

Learning Outcome – to demonstrate an understanding of:

  • Articulating the principles of the new rules and guidance.
  • Explaining the key aspects for advisers and what changes might be needed to existing processes.
  • Recognising what practical steps can be taken to ensure adherence to the new requirements.

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

1. What is the date when firms must have agreed implementation plans by to comply with Consumer Duty?

a. 30th July 2023

b. 30th April 2024

c. 31st October 2022

d. 1st January 2023

 

2. What are the four outcomes the FCA is seeking to improve under the Consumer Duty?

a. Treating customer fairly, price and value, acting in good faith and avoiding foreseeable harm

b. Products and services, price and value, consumer understanding and consumer support

c. Avoiding foreseeable harm, price and value, meeting customer objectives and consumer understanding

d. Price and value, avoiding foreseeable harm, helping consumers understand and staying with

 

3. What do both ‘manufacturers’ and ‘distributors’ need to consider when looking at the value of an investment product?

a. The fair investment value assessment of the product

b. If the total charge exceeds a 1.5% p.a.

c. The rolling reduction in value at five year points

d. The value it will add to the client, but only when sold without advice 
 

To claim your CPD certificate, click here. 

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