It aims to help advisers comply with new Consumer Duty measures
Mortgage, protection, and compliance services proposition Paradigm has launched a new hub with links to product manufacturers’ fair value assessment documentation.
As part of their new responsibilities under the Financial Conduct Authority’s Consumer Duty measures, all product manufacturers of regulated products, were required to provide a fair value assessment of their products from April 30.
The fair value assessment documents have to be accessed by advisers and assessed by each individual firm to review whether they believe the products offer fair value to their customers. Firms can then use these documents when assessing the fair value of their own service propositions.
The statements produced by the manufacturers should help advisers to:
- Understand the characteristics of the products
- Understand the identified target market
- Consider the needs, characteristics and objectives of any customers who may potentially be vulnerable
- Identify the intended distribution strategy
- Ensure the product will be distributed in accordance with the target market
To help advisers, Paradigm has housed all the fair value assessment documentation links made available to them from manufacturers in one place.
Paradigm said this will save advisers valuable time to be able to quickly access links to documents in one place, rather than visiting each individual manufacturer website. Paradigm has also split the links by sector covering mortgages, equity release, protection, investments, and pensions.
“Rather than having to visit every single product manufacturer’s website and search for their fair value assessment documentation, we have created this link hub which is split by sector, and should ease the process for advisers and firms, in what is a requirement under Consumer Duty,” Christine Newell (pictured), mortgage technical director at Paradigm, said.
“Product manufacturers are providing Paradigm with these links, and advisory firms should now be making use of these documents in order to undertake the reviews which will help them meet their Consumer Duty obligations.
“We are just a few months away from the official start of the Consumer Duty rules, but as firms can see, the requirements need to be met on an ongoing basis. At Paradigm, we’re here to support advisory businesses, and we would urge anyone looking for further help, advice or guidance to contact us.”
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