The introduction of the Consumer Duty is a significant step in the Financial Conduct Authority’s (FCA) ongoing commitment to strengthening consumer protection within the financial services sector. The new duty sets higher and clearer standards of consumer protection across financial services, and requires firms to put their customers’ needs first.
This initiative encompasses a core principle that financial firms must prioritise delivering favorable outcomes for their retail customers. It entails establishing expected behaviors and a range of consumer outcomes that these firms must adhere to and demonstrate, ensuring they act in the best interests of their clients. You can read more about it on the FCA website here.
At iPensions Group, our primary mission has always revolved around empowering our customers to thrive during their retirement years. We achieve this by offering transparent and compliant products, innovative technology and unrivalled personable service. Thus, the fundamentals of the Consumer Duty align with our existing principles and company values. With a wealth of experience as pension trustees and administrators, we balance new thinking with the security and confidence that comes from intense governance to ensure every client is well looked after. Using our in-house built system, we continually explore new and innovative ways to facilitate reliable and timely support for our advisers and clients.
This page serves as an overview, outlining how we actively embrace and implement the Consumer Duty within our business practices. It highlights the steps we take to evidence our commitment and when you can expect key documents related to this initiative to be made available.
The Four Outcomes of the Consumer Duty provide rules and guidance for firms, setting expectations around the main elements of the firm and customer relationship:
- Products and Services requires us to ensure that our products and services are designed to meet the needs of our target audience. We continuously carry out target market research and analyse our product suitability in line with changing market conditions. We take adviser and customer feedback and strive to improve our processes and procedures. Through our investment in technology we ensure that the procedures designed are lean and support customer servicing. Our flexible approach removes any unnecessary barriers for our customers. This is demonstrated through our portfolio of products where depending on the customer’s changing needs, they can choose the product best suited for their needs.
- Price and Value requires us to ensure that the costs and charges represent fair and reasonable value for our products and services. Our value proposition is multi-dimensional. From ensuring we understand our members’ needs, offering relevant products suitable for our customer segments, to helping them achieve their retirement objectives, we support our customers and their advisers with maximum flexibility and choice, including investment opportunities. Our annual charges cover standard pension administration services and additional charges only apply based on the services the customer use. Our pricing is not the cheapest but is also not the most expensive and it’s centred around personable service. With over 20 years experience in the pensions industry, we offer technical expertise and support. Our continuous investment in technology also provides added value to our customers by giving them 24/7 access to online services.
- Customer Understanding requires that we provide clear information, at the right time, with our communications supporting and enabling customers to make informed decisions. To meet this requirement, we ensure our customers receive communication that is clearly written to help them reasonably understand it. Where possible, we tailor the communication depending on the individual’s circumstances. Our marketing website, marketing campaigns and core product literature are easy to understand by our target customers. Furthermore, we have created a Glossary with common pension terminology. This helps ensure that communications where pension terminology cannot be removed due to other regulatory requirements, can be understood by our customers. Our focus on staff training further helps ensure we can meet this requirement.
- Customer Support requires us that we provide a level of support that meets customers’ needs and helps support them achieve their financial objectives, including those who may be classed as vulnerable clients. We always concentrate on providing an individual and personable service, with as much flexibility as possible. Our teams are always available to help our customers with a particular focus on those needing the extra care and attention. Our positive attitude and focus on staff training, listening to customers and advisers for their feedback and making constant improvements will ensure we can offer the level of customer support the Duty expects us to deliver.
The Consumer Duty requires firms to put consumers at the core of their business, aiming to deliver good customer outcomes. In addition, it also introduces a number of cross-cutting rules focusing on three key behaviours which require firms to:
- Act in good faith towards customers.
- Avoid foreseeable harm to customers.
- Enable and support customers to pursue their financial objectives.
