Aegon has issues a list of recommendations for financial advisers ahead of the implementation of consumer duty at the end of July.
Following the publication by the Financial Conduct Authority of 10 key questions for firms across the retail financial services world to ask themselves as they complete their preparations, Aegon published a list of recommendations specifically for financial advisers.
It recommended that advisers should evidence delivery of their implementation plan, review the FCA’s 39 example questions, document their target markets and segmentation, finalise value assessments, and check their management information against the FCA’s suggestions list.
The company also suggested that advisers formalise their approach to vulnerable customers, review their customer feedback, read the latest FCA material, keep prioritising, and get their records in order.
Speaking on this list of recommendations, Aegon pension director, Steve Cameron, said: “In this final stretch, advisers will want to make sure they have all the necessary evidence in place.
“I’d recommend documenting not just what changes you’ve made, but also where you’ve considered an aspect of your business and why you concluded it already meets the duty requirements.
“It would also be helpful to have a formalised record of how you identify and adapt your services where customers have characteristics of vulnerability."
Cameron added that, once the duty is live, the FCA is likely to take a particular interest in adviser value assessments, target markets and approaches towards segmenting clients.
He urged advisers to ensure everything is documented and reviewed on an ongoing basis.
Meanwhile, Aegon was not the only entity to offer advice ahead of the consumer duty's this month.
Pimfa warned advice firms and wealth managers not to be “consumer duty zombies”, stating that while the majority of firms have heeded the FCA's advice to take consumer duty seriously, there may still be a few firms that have yet to make their preparations.
The body also offered its own assistance for advisers by publishing a consumer duty paper which includes resources such as a summary of the consumer duty requirements, particle guidance on likely FCA expectations, and a consumer duty self-assessment tool to help firms assess their progress.
Alexandra Roberts, head of regulatory policy and compliance at Pimfa, said: “If any firms still need help there are lots and lots of resources on the PIMFA website but the team and our associate members are also happy to help so please use the information and resources available to ensure you meet the deadline.”
tom.dunstan@ft.com
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