Mortgage, protection and compliance services distributor Paradigm has added a Consumer Duty test to their CPD Academy Test Zone and launched their latest video in its Consumer Duty On Film series covering fair value assessments.
Ahead of the Financial Conduct Authority’s (FCA’s) Consumer Duty coming into force at the end of the month, the test allows individuals within firms to demonstrate their knowledge and understanding of the new rules and the key changes that the regulation brings in.
Paradigm also launched the latest in its Consumer Duty video series, which provides information and guidance to all advisory firms preparing for the new rules.
The latest video is hosted by Paradigm’s head of consultancy, Graeme Stewart who is joined by Paradigm’s director of mortgages, Richard Howes, and director of protection, Mike Allison (pictured) to cover the issue of fair value assessments.
All manufacturers of regulated products, including most lenders and providers, were required to have produced fair value assessments for their products by the 30 April this year. The latest video highlights what firms should do with this new information going forward, in addition to looking at firms’ own fair value assessments for the services they offer.
Stewart said: “We are now less than a month away from the formal implementation of the Consumer Duty rules, which will kick in from the 31 July.
“Advisory firms will have been working incredibly hard in terms of ensuring they are compliant with those rules, and they have everything in place to ensure the best outcomes are delivered for their clients
“However, there is still time to make sure firms are entirely comfortable with all Consumer Duty aspects, and here at Paradigm we’ll continue to offer information, support and resource around different aspects of the Duty.”
The video covers fair value assessments – an area in which there has been some confusion about the responsibility of advisory firms in comparison to those product manufacturers such as lenders.
“So, while advisory firms are not classed as a manufacturer in terms of products – and were not required to hit the 30 April deadline date because of this – they are considered to be ‘manufacturers’ of the services they provide to their clients. This means they have to conduct their own fair value assessments of those client services,” Stewart said.
“In this video, we outline exactly what this means and how firms can bring together the fair value assessments from lenders/providers, with their own fair value assessments for their clients.
“I would urge everyone active in this space to watch our entire series of videos leading up to this one, as it does take you on the full Consumer Duty journey and will give you plenty of food for thought to ensure your firm is in the right place for a series of very important changes to our regulatory landscape.”