At Flying Colours, we’re always looking for new ways to expand our knowledge and expertise, so we can deliver a better service to our valued clients.
Joining various professional bodies is one way to do this, and we recently became a member of the Consumer Duty Alliance (CDA). We also signed up to the Financial Vulnerability Charter (FVC), a commitment designed by the Financial Vulnerability Taskforce (FVT) to protect those in vulnerable circumstances.
These organisations help us find new ways to develop our advice offering and provide crucial support to our clients.
Read on to learn more.
The Consumer Duty Alliance helps us deliver the best possible service to our clients
The Financial Conduct Authority (FCA) is responsible for regulating the financial services profession and ensuring that firms and individuals act in the best interests of their clients.
To help achieve this, the regulator recently introduced its “Consumer Duty” standard, which all firms have had to adhere to since 31 July 2023.
Consumer Duty sets out expectations and guidelines for advisers, with the hope of improving outcomes for clients in four key areas:
- Products and services – All products and services must be fit for purpose. Additionally, products should only be recommended to you if they’re suitable for your unique financial plan and will help you achieve your goals.
- Price and fair value – All products and services should be priced fairly and offer good value for money.
- Consumer understanding – All information should be presented in a clear way that you can understand. Firms will also communicate any important information about legislative changes or market movements that could affect your financial plan.
- Consumer service – You should receive regular support when you require it, and the customer service will always meet your needs.
Before Consumer Duty was implemented, we were already meeting these criteria as we always seek to provide a reliable, fair service to our clients. However, to ensure we’re doing everything we can, we recently joined the CDA – a non-profit organisation that aims to support firms as they work towards the benchmarks set out by Consumer Duty.
The CDA is a strong network of advisers and firms, coordinating and sharing ideas about Consumer Duty best practice. The alliance also works closely with the FCA to stay ahead of regulatory changes and communicate important updates to its members.
Our membership gives us the opportunity to attend events, collaborate with other firms, and take advantage of valuable guides. This means we can consistently find new ways to meet and exceed the high standards set out by Consumer Duty.
Ultimately, this allows us to position ourselves at the forefront of the profession and increase the value we offer to our clients.
The Financial Vulnerability Charter gives crucial guidelines for supporting at-risk clients
As part of our membership with the CDA, we’ve also signed up to the FVC.
Understanding how to support clients in vulnerable circumstances is an important part of financial advice. Your circumstances might be considered vulnerable for many reasons including your age, mental or physical disabilities, or mental health issues. You could also be considered in “temporarily vulnerable circumstances” if you experience a stressful event such as a bereavement or divorce.
If you are in vulnerable circumstances, you may struggle to understand the advice you receive and could make decisions that work against your financial plan. That’s why it’s so important for us to be able to identify at-risk clients and provide suitable support to them.
Unfortunately, many advisers fail to recognise vulnerabilities in their own clients. According to FTAdviser, a survey found that 51% of investors had vulnerable tendencies. However, a group of advisers only identified 14% of their client banks as vulnerable.
This could mean that many clients aren’t receiving the support they need. The Financial Vulnerability Taskforce (FVT), which is part of the CDA, aims to combat this problem and empower individual advisers and firms to look after their clients.
Signing up to the FVT’s charter demonstrates our commitment to going above and beyond to make sure that we accommodate clients in vulnerable circumstances. To achieve this, we follow the guidelines set out in the charter.
These include:
- Understanding that vulnerabilities come in many forms, and learning to recognise them
- Clearly explaining the advice process and the cost of our services during early interactions with clients
- Treating all clients in a way that encourages equality of opportunity regardless of their age, race, gender identity, sexuality or religion
- Recognising when clients in vulnerable circumstances are in immediate danger of abuse or harm and notifying the relevant authorities.
By upholding these standards, we can better support our clients. This means that you can rest easy in the knowledge that we’re working in your best interests and will protect your wealth, no matter your circumstances.
We’re proud to be an active part of the CDA and uphold the rigorous standards it sets out because it means that we are better prepared to help our clients achieve their financial goals.
Get in touch
If you want to learn more about how our membership with the CDA and the FVT could benefit you, email hello@fcadvice.co.uk or call 0333 241 9900.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
