Fair value
This page sets out our approach to Fair Value for the Products & Services and Price & Value outcomes of the Consumer Duty.
Our assessment of target market and distribution considers the key needs of our customers and provides robust checks to make sure those needs are being met. We also identify any customers for whom our products may be less suitable.
We've developed a comprehensive and robust assessment process to determine the value of our products. This analysis is used to evaluate whether the products deliver fair value for our customers.
Fair Value assessment
Our product range is designed to meet the needs, characteristics, and objectives of customers in our target market.
Our distribution strategy is designed to be appropriate for our target market.
Our products are designed to provide fair value to customers in our target market (i.e. the total benefits are proportionate to total costs).
We also consider the potential vulnerabilities of our customers, and how they use our products and services.
We look at the benefits of the product and review any limitations of these benefits.
We have a financial and non-financial approach to cost and pricing.
Results of our assessments
These documents will be reviewed regularly
Further reading
For more information about consumer duty.
Visit the FCA website.
Frequently asked questions
No, the key difference between Consumer Duty and TCF is that Consumer Duty sets the expectation to provide fair outcomes for customers and the new expectation for firms to support providing good outcomes.
It’s a more proactive approach than TCF, which was reactive in its approach to providing good outcomes.
We’ll be communicating this in due course. We want to exchange data in a common industry format and for this we’re waiting on a template being defined by UK Finance. This will help facilitate consistent sharing of MI across the industry.
We’ll always treat any customer who’s been identified as vulnerable individually, fairly and appropriately. We’ll communicate with them in a manner suitable to their circumstances and using any communication needs they may have, ultimately ensuring they’re generally supported in an appropriate manner. We’ve identified as part of our target market that a proportion of our customers may have vulnerable characteristics.
Therefore, if we identify the vulnerability, or if you disclose a client’s vulnerability to us, we’ll record this and provide appropriate support. This may include contacting the customer, you or both to check if additional information is required to aid understanding or find out if we need to change how and when we communicate.
No, we don’t anticipate any changes to our application processing service levels because of Consumer Duty.
You must read and accept our terms and conditions each time you register and submit business on our portal. We haven’t changed our terms and conditions but have added some information around roles and responsibilities in there in light of Consumer Duty. As it may have been a while since you had reviewed and accepted these terms and conditions, we wanted to give you an opportunity to review the additional information before you accept the terms and conditions again. In order to submit business we always ask you accept our terms and conditions. If you do not accept the terms and conditions you will be unable to submit any new applications.
As per our normal processes, you’ll need to confirm you accept them each time you log in.