It reiterates commitment to transparency, good practice, and better client outcome
Aiming to become part of the drive to promote good practice and deliver better client outcome, Legal & General has announced its membership of a new independent professional body called the Consumer Duty Alliance (CDA).
The CDA, which launched on March 9, has been established to inspire greater confidence and trust in financial advice and planning, ahead of the introduction of the Consumer Duty in July.
By sharing examples and insights on their approach, CDA members will promote better standards in benchmarking, regulatory interpretation and practice.
The Consumer Duty Alliance is an independent, not-for-profit community interest company aiming to help the financial planning sector successfully implement the @TheFCA Consumer Duty.
— Consumer Duty (@ConsumerDuty) March 17, 2023
Here’s our mission statement: https://t.co/KNJ6Cs4KHJ#FinancialPlanning #SafePairOfHands
The launch of the CDA follows a Financial Vulnerability Taskforce (FVT) member survey, which looked at the experiences of FVT member organisations in relation to Consumer Duty. The survey found that majority of the respondents would like clearer guidance ahead of the implementation deadline on July 31, 2023.
The CDA has excluded commercial activities from its remit, with initial funding support provided by Legal & General and Howdens Brokers as Foundation Affiliates. As with other CDA members, Legal & General has adopted an independent Code of Professional Standards, as well as the consumer facing Financial Vulnerability Charter.
Working in partnership with the Financial Vulnerability Taskforce and CDA, Legal & General has supported the launch of the Consumer Duty and Retirement Income target market guide, which focusses on what actions advice firms might consider taking with the new Consumer Duty, in light of a changing retirement income landscape and evolving consumer needs.
“At Legal & General, we welcome the new Consumer Duty as it reinforces the importance of consumer protection and drives enhanced outcomes,” commented Cecilia Furner, retail annuities distribution director at Legal & General (pictured). “We have always understood the value of transparency, clear standards, and providing products and services that both intermediaries and customers can easily understand and benefit from, and we’re committed to supporting people in vulnerable circumstances.
“With four months to go before the Consumer Duty comes into force, the launch of the CDA is an incredibly timely initiative. We are delighted to partner with the Alliance to share good practice in support of better client outcomes and are committed to working closely with industry peers to ensure effective delivery against the new standards.”
Keith Richards, chief executive at Consumer Duty Alliance, added that the need for an alliance across financial services has the potential to unite the profession in both a pre- and post-Consumer Duty landscape.
“This is evident from the significant cross-sector response and encouragement following the launch of the CDA,” Richards noted. “We would like to thank Legal & General for their support as a foundation affiliate, along with their expertise and input to the creation of the Retirement Income guide.”
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