Consumer duty
- Where has the Consumer Duty come from?
The FCA recently announced plans to introduce a Consumer Duty into regulation. This requires firms to act to deliver good outcomes for retail clients. Whilst Landbay does not offer regulated products to retail customers, we recognise the value and importance of fair customer outcomes and the responsibilities of a prudent mortgage lender under the Consumer Duty. Because of this, you can expect to see alignment to the regulatory expectations when doing business with us.
- What does it mean for you?
- As a broker, you can access our Fair Value Disclosure documents. These are designed to provide the results of the value assessments we undertake for each product family. You can find Landbay’s Fair Value Disclosure documents in the Intermediaries section of our website. We make this information available to intermediaries to help them:
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- Understand the characteristics of the product or service;
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- Understand the identified target market;
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- Consider the needs, characteristics, and objectives of any customers with characteristics of vulnerability;
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- Identify the intended distribution strategy; and
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- Ensure the product or service will be distributed in accordance with the target market.
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- Our products and services are specifically designed to meet the needs of consumers and sold to those whose needs they meet;
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- The price of products and services represents fair value for customers;
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- Customer service meets the needs of consumers, enabling them to realise the benefits of products and services and act in their interests without undue hindrance; and
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- Our communications equip customers to make effective, timely and properly informed decisions about financial products and services.
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- Where can I find out more?
Our website is designed to equip our applicants and brokers with the information they need to make informed decisions – whether that’s accessibility, product information, how you can complain and much more. You can find what you need using the documents section of our website.
- What are the key dates?
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- 30 April 2023 – completion of reviews (Fair Value Disclosure documents) to share with distributors
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- 31 July 2023 – the Duty will apply from this date to all new products and services and all existing products and services that remain on sale or open for renewal
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- 31 July 2024 – the Duty will come fully into force from this date and apply to all closed products and services
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- Useful Information
FCA Consumer Duty Overview:
https://www.fca.org.uk/firms/consumer-duty
Inside FCA Podcast:
Understanding the Consumer Duty products and services outcome
What is the price and value outcome?
https://www.fca.org.uk/multimedia/inside-fca-podcast-price-and-value-outcome
Explaining the Consumer Duty consumer understanding outcome
What does the Consumer Duty consumer support outcome mean?