Consumer Duty asset managers backup
What is Consumer Duty?
At the end of July, the FCA will release a full paper of what their new Consumer Duty requirements will entail.
Based on what we know so far, the key areas and outcomes will be:
Consumer Duty will go beyond what the FCA has previously outlined around delivering good value to consumers, and further emphasise a need to ensure new and existing products best serve their target markets.
Products and services must serve clients in a way that leads to good customer outcomes and the provider must seek to prevent any foreseeable harm.
In addition, providers must support customers to make informed decisions through clear, sense-checked communications, as well as resources that consumers can utilise.
Why is Consumer Duty so important for asset managers to act on?
The FCA outlines that ‘manufacturers’, i.e., asset managers, must ensure that products and services are suitable for the intended target market.
To choose the most appropriate product, consumers must understand their options and be able to come to an informed decision. This is achieved through clear communications, but also platforms pitching and marketing products to the right audience.
What should asset managers do?
Throughout CP21/36, the FCA highlight the importance of introducing third parties to consumer duty processes, mainly to gain validity and accountability.
Our key products and research that can help platforms with Consumer Duty can be outcome specific, or outcome wide.
But! There are many more services Boring Money can offer – in addition to Fund Investor Tracker or separately…
Outcome 1 – Products & services
New Product Development research
Segmentation and focus groups
Existing product testing with mini-groups
Inclusive research with those classed as vulnerable
Outcome 2 – Price & Value
Customer Voices – qualitative insights as to WHY asset managers do or do not offer good value
Outcome 3 – Consumer Understanding
Interactive communications testing - factsheets, websites, KIIDs, prospectus documents, Assessment of Value statements, etc.
Outcome 4 – Consumer support
User research of websites and key pages.
Retail Investor 2022
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