Paradigm has launched the latest in its Consumer Duty video series, which provides information and guidance to all advisory firms preparing for the new rules.
As part of its ‘Consumer Duty On Film’ series, this latest video – hosted by Paradigm’s head of consultancy, Graeme Stewart who is joined by Paradigm’s director of mortgages, Richard Howes, and director of protection, Mike Allison – covers the issue of Fair Value Assessments.
All manufacturers of regulated products, including most lenders and providers, were required to have produced Fair Value Assessments for their products by the 30th April this year, and the latest video highlights what firms should do with this new information going forward, in addition to looking at firms’ own fair value assessments for the services they offer.
Now these are available, the video focuses on the three Fair Value Assessment areas firms should look at and prioritise, prior to the introduction of the Consumer Duty rules on the 31st July. Paradigm outlines these as:
- Firms interrogating their own charging structure for all the services they provide, and conducting a Fair Value Assessment on their own services.
- Utilising the manufacturer’s Fair Value Assessments on products to assess whether they agree with the target market that has been outlined and whether it does offer fair value to the advisers’ clients.
- Marrying parts 2) and 3) together so that when all the charges and services are combined, their overall proposition adds fair value to the client.
The video goes on to look at the practical and tangible ways firms can make use of the Fair Value Assessments, and is relevant to the entire advisory community, including both mortgage and protection firms as well as investment and pension professionals.
All of the videos are available to view at Paradigm’s Consumer Duty Support hub.
In addition, Paradigm has today launched a Consumer Duty test to its CPD Academy Test Zone. This new addition will allow individuals within firms to demonstrate their knowledge and understanding of the new rules and the key changes that the regulation brings in.
Graeme Stewart, head of consultancy at Paradigm, said: “We are now less than a month away from the formal implementation of the Consumer Duty rules, which will kick in from the 31st July.
“Advisory firms will have been working incredibly hard in terms of ensuring they are compliant with those rules, and they have everything in place to ensure the best outcomes are delivered for their clients.
“However, there is still time to make sure firms are entirely comfortable with all Consumer Duty aspects, and here at Paradigm we’ll continue to offer information, support and resource around different aspects of the Duty.
“This latest video covers Fair Value Assessments – an area in which there has been some confusion about the responsibility of advisory firms in comparison to those product manufacturers such as lenders.
“So, while advisory firms are not classed as a manufacturer in terms of products – and were not required to hit the 30th April deadline date because of this – they are considered to be ‘manufacturers’ of the services they provide to their clients. This means they have to conduct their own Fair Value Assessments of those client services.
“In this video, we outline exactly what this means and how firms can bring together the Fair Value Assessments from lenders/providers, with their own Fair Value Assessments for their clients.
“I would urge everyone active in this space to watch our entire series of videos leading up to this one, as it does take you on the full Consumer Duty journey and will give you plenty of food for thought to ensure your firm is in the right place for a series of very important changes to our regulatory landscape.”
