| Activity | % completed | Time to complete |
|---|---|---|
| Money in | 90% | 3 days |
| Money out | 90% | 2 days |
| 90% | 3 days | |
| Telephony | 90% | 2 minutes & 30 seconds |
- Consumer Duty
- Value Assessment
- Target Market Documents
- Insights
Getting ready for Consumer Duty
The FCA’s new Consumer Duty sets higher and clearer standards of consumer protection across financial services. This hub contains resources and practical guidance to support you as you prepare for the new regulations and how you will demonstrate compliance with them.
Keep checking back – we'll be adding new insights on a regular basis.
Our Adviser Guides
Consumer Duty Adviser Guide
Read all about what Consumer Duty means for your business, why it’s here and how M&G Wealth Platform is supporting Financial Advisers in their preparation for meeting the duty.
Segmentation Guide
Explore the benefits of segmentation and questions to ask as you develop your approach to targeting client needs to deliver better outcomes. A must read guide with practical tips and guidance if you’re looking to review your client servicing proposition.
Fair Value Guide
Designed to support you as you define, measure and demonstrate the value you deliver for clients. Includes steps to building a fair value assessment framework, how to identify the benefits of your service and how to break down your own costs.
Useful FCA guides and documents
FCA's dedicated Consumer Duty page
A hub for all FCA Consumer Duty content including the final rules, key publications and key milestones.
FCA's events page
Find out what Consumer Duty events are planned across the UK between February and June 2023.
Our approach to assessing fair value considers the product and the platform service that provides access to the product. Where there is another manufacturer, we’ll rely on their fair value assessment in respect of their product.
Product and platform assessment
We consider the value that our propositions offer from both a product and platform offering perspective. This allows us to understand both the value offered by the component parts of our proposition as well as the potential outcomes for customers. We also consider the service and benefits that the products provide from an operational and customer outcomes perspective to ensure they provide value for money and meet the customer’s reasonable expectations.
No allowance is made for adviser charges that we may facilitate or other services that are paid for from the product, such as discretionary fund management or third party product charges where applicable. We also rely on the investment manufacturer’s assessment of value.
Proposition Benchmarking
We consider, as part of our regular product lifecycle management process, the position of each proposition in the marketplace. This considers the design and charging structure of the proposition, as well as features and benefits against our peer group from a comparability and competitiveness perspective.
Products and their benefits
Summary information of each product is provided below. For more detail on the benefits and features of each product please see the product Target Market and Key Features documents.
The M&G Wealth Pension Account is a self-invested personal pension and drawdown product that lets customers save for their retirement, bring pension assets together and take income, all from the same plan.
As a result of the most recent assessment, we concluded that M&G Wealth Pension Account meets our value assessment requirements and there were no limitations in the product that could reduce its value or benefit to the customers within the target market.
Investment components
The investment options available through the M&G Wealth Pension Account are subject to their own value assessment.
Where we provide access to investments and model portfolios through our product or service, we will rely on the manufacturer's assessment to ensure they are meeting fair value requirements.
Where a manufacturer's value assessment highlights that they are not meeting the requirements, we will consider their improvement plans and assess any appropriate action to take.
Please note we are reliant on the manufacturer undertaking their value assessment in accordance with regulatory expectations. Advisers are expected to consider all parts of the value chain within their own value assessment and should consider if additional oversight is required.
Product charges and costs
Our most recent value assessment considered the charges and costs of the product and its services. This included benchmarking against our peers, considering the features and benefits provided by the product and the platform. The assessment concluded that the charges and costs meet our value assessment requirements.
For more information on product charges and costs please refer to our Simple Pricing & Charges page and Platform Charges Document.
The M&G Wealth General Investment Account (GIA) is a savings plan that lets customers pay in flexibly without any limits and access their money at any time. Savings within the GIA are subject to tax on any growth.
As a result of the most recent assessment, we concluded that M&G Wealth GIA meets our value assessment requirements and there were no limitations in the product that could reduce its value or benefit to the customers within the target market.
Investment components
The investment options available through the M&G Wealth GIA are subject to their own value assessment.
Where we provide access to investments and model portfolios through our product or service, we will rely on the manufacturer's assessment to ensure they are meeting fair value requirements.
Where a manufacturer's value assessment highlights that they are not meeting the requirements, we will consider their improvement plans and assess any appropriate action to take.
Please note we are reliant on the manufacturer undertaking their value assessment in accordance with regulatory expectations. Advisers are expected to consider all parts of the value chain within their own value assessment and should consider if additional oversight is required.
Product charges and costs
Our most recent value assessment considered the charges and costs of the product and its services. This included benchmarking against our peers, considering the features and benefits provided by the product and the platform. The assessment concluded that the charges and costs meet our value assessment requirements.
For more information on product charges and costs please refer to our Simple Pricing & Charges page and Platform Charges Document.
The M&G Wealth ISA is an Individual Savings Account that lets customers accumulate tax-efficient savings, subject to the annual ISA subscription limit. The M&G Wealth Junior ISA is a tax-efficient savings account, subject to the annual Junior ISA subscription limit and available to an Eligible Child under 18 years old.
As a result of the most recent assessment, we concluded that the M&G Wealth ISA & Junior ISA meet our value assessment requirements and there were no limitations in the products that could reduce their value or benefit to the customers within the target markets.
Investment components
The investment options available through the M&G Wealth ISA and Junior ISA are subject to their own value assessments.
Where we provide access to investments and model portfolios through our product or service, we will rely on the manufacturer's assessment to ensure they are meeting fair value requirements.
Where a manufacturer's value assessment highlights that they are not meeting the requirements, we will consider their improvement plans and assess any appropriate action to take.
Please note we are reliant on the manufacturer undertaking their value assessment in accordance with regulatory expectations. Advisers are expected to consider all parts of the value chain within their own value assessment and should consider if additional oversight is required.
Product Charges and Costs
Our most recent value assessment considered the charges and costs of the product and its services. This included benchmarking against our peers, considering the features and benefits provided by the product and the platform. The assessment concluded that the charges and costs meet our value assessment requirements.
For more information on product charges and costs please refer to our Simple Pricing & Charges page and Platform Charges Document.
Customer Support & Understanding
In addition to the value assessment work and as part of the customer support and understanding outcome focus, the Customer Insights (CI) team have been working across the business to formulate research studies to test against Consumer Duty requirements.
The result of the initial research while mainly positive, has highlighted priority areas where improvements can be made. The CI team will continue working with independent testing agencies who’ve been providing Consumer Duty guidance for some time.
Service
Delivering customer value and improving customer experience is at the heart of everything we do. As part of our ongoing customer support and understanding assessment we will undertake reviews of our key journeys and communications. We aim to ensure our customers do not face unreasonable barriers (including unreasonable additional costs such as delays, distress, or inconvenience).
The assessment result is positive, and no material concerns were raised.
Important notes
The above figures represent processing times, met on average, across the most recent 12-month period, and can be subject to variation. For any processes that fall out-with the average timescales, we will endeavour to resolve & complete as soon as possible.
Money in
Contributions received by electronic means with all supporting requirements.
Money out
Following receipt of any relevant forms and settlement of all funds being used to finance the payment.
Bereavement
We understand that taking care of the necessary formalities while mourning a loss can make even the smallest tasks seem overwhelming and difficult. Time is one of the factors to be considered when completing a claim, however our dedicated Bereavement Team are also there to provide empathy, compassion, and care when handling cases during what is a difficult but extremely important time.
Platform
The M&G Wealth Platform target market statement indicate which customers might benefit from using the M&G Wealth Platform based on their needs, characteristics and objectives.
GIA
The General Investment Account (GIA) target market statement indicates which customers might benefit from the M&G Wealth GIA.
ISA
The Individual Savings Account (ISA) target market statement indicates which customers might benefit from the M&G Wealth ISA.
JISA
The Junior Individual Savings Account (JISA) target market statement indicates which customers might benefit from the M&G Wealth JISA.
SIPP
The Pension Account (SIPP) target market statement indicates which customers might benefit from the M&G Wealth Pension Account.
Outcome 1: Products and Services
The FCA wants all products and services for retail customers to be fit for purpose. This means they are designed to meet consumers’ needs, and subsequently targeted at these consumers with different requirements, depending on the firm’s role in the distribution chain.
Outcome 2: Price and Value
The FCA’s second outcome is based on its assertion that consumers experience harm where they don’t get value for their money. And a lack of fair value is also unlikely to be consistent with customers realising their financial objectives.
Outcome 3: Consumer Understanding
All firms will be expected to go beyond the current Principle 7, ‘clear, fair and not misleading’, when communicating with customers. The FCA wants consumers to be given the information they need, at the right time, and presented in a way they can understand.
Outcome 4: Consumer Support
This relates to how a firm supports its customers using its products and services. The purpose of this support should enable customers to realise the benefits of the products and services they buy, pursue their financial objectives, and ensure they can act in their own interests.