As the industry approaches the 31 July deadline for the Financial Conduct Authority’s (FCA) Consumer Duty, Aegon has offered ten recommendations specifically targeted at advisers to help them prepare for the upcoming changes.
The move comes after the FCA published ten key questions for firms to consider in their final month of preparations.
Steven Cameron, pensions director at Aegon, said: “With the deadline for the FCA’s Consumer Duty rapidly approaching, it can be a challenge to keep track of the vast amount of material the FCA has provided.” Cameron encouraged collaboration between providers and advisers, which he stated the Consumer Duty further reinforces.
Cameron also drew attention to the broad range of resources provided by the FCA that would be particularly useful for advisers, including the complete set of 39 example questions and the Final Guidance, which includes a helpful list of suggested Management Information.
Aegon’s pensions director emphasised the importance of advisers having sufficient evidence in place before the deadline. This evidence should not only include changes made to their business practices but also documentation on aspects of their business that already meet the Duty requirements. He stressed the need for a formalised record on how advisers identify and adapt their services for customers showing characteristics of vulnerability.
Following the implementation of the Duty, Cameron believes the FCA will have a particular interest in adviser value assessments, target markets, and client segmentation. He recommends these areas be documented and reviewed regularly.
Aegon’s 10 recommendations for advisers are:
- Provide evidence of the delivery of the implementation plan.
- Review the FCA’s 39 example questions.
- Document your target markets and segmentation.
- Finalise value assessments.
- Check your Management Information (MI) against the FCA’s suggestions list.
- Formalise your approach to vulnerable customers.
- Review your customer feedback.
- Read the latest FCA material.
- Prioritise tasks.
- Ensure all your records are in order.
These recommendations are designed to assist advisers in navigating the final stages of preparation for the FCA’s Consumer Duty deadline.
