It’s easy to say that you put clients at the heart of everything you do, but at Magus Wealth, we do more than just say it.

Consumer Duty – what is it and why should you care?

Many people face barriers in pursuing their financial objectives and The Financial Conduct Authority (FCA), the UK’s regulatory body for financial advisers and financial services firms, wants to see firms deliver a higher standard of client care and protection, and to go further to equip people to make effective decisions, putting their clients’ best interests at the heart of their business, offering products and services that are fit for purpose and represent fair value.

The overarching principle is ‘A firm must act to deliver good outcomes for consumers’. Guidance also breaks this principle into three cross-cutting rules and four key outcomes that all firms must follow and be able to demonstrate that they are consistently meeting this principle for all their clients.

The overarching principle

‘A firm must act to deliver good outcomes for consumers’. A straightforward and perfectly reasonable expectation for clients. All regulated firms and advisers who are members of the Consumer Duty Alliance have adopted this principle.

Guidance also breaks this principle into three cross-cutting rules and four key outcomes that all firms must follow and be able to demonstrate that they are consistently meeting this principle for all their clients.

The three cross-cutting rules that firms must adhere to

These rules outline the FCA’s overarching expectations of firms to:

The four consumer outcomes you should expect

These outcomes build on the Consumer Principle and the Cross-cutting rules and represent the FCA’s expectations of a firm in its relationships with consumers:

The Consumer Duty Alliance

So far so good, but as you would expect, we didn’t stop here, and Magus Wealth are members of the Consumer Duty Alliance, a not-for-profit, independent membership body. Its purpose is to inspire greater confidence and trust in financial advice and financial planning by supporting the delivery of consistently good outcomes.

Members of the Alliance:

Amanda Mayes, Operation Director, Magus Wealth says, “We signed up to the Consumer Duty Alliance because we are committed to building trust in financial advisers and hope that this new alliance will provide tangible and meaningful support in this area. We clearly understand the value of providing clients with services and products they can easily understand – we’ve always believed and are passionate about supporting the very best client outcomes”.

The Alliance is about promoting best practices, creating trust, and delivering the best client outcomes, which are reasonable expectations for anyone.

The goal is that as a client you should always feel empowered to make informed decisions, always feel you can ask questions, take time to consider recommendations, and be confident in any advice given and recommendations made.

You can find out more here:

You can find out more and view the code of professional standards we adhere to here

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