An update on Consumer Duty

ReAssure is part of the Phoenix Group and this article updates you on how our family of companies have responded to new rules from the Financial Conduct Authority (FCA).

The FCA’s Consumer Duty sets higher and clearer standards of consumer protection across financial services is effective from:

  • 31st July 2023 for new and existing products or services that are open to sale or renewal.
  • 31st July 2024 for closed products or services.

We’re fully committed to Consumer Duty

Across Phoenix Group, helping our customers achieve good financial outcomes has always been important to us. Our brands are fully committed to Consumer Duty and are working to make certain our products and services meet the FCA’s new standards.

To do this, we’ve:

  • Reviewed all of our open (on sale) and closed (no longer on sale) products to make sure they meet customer needs and offer fair value.
  • Looked at the buying process for our products, reducing the chance of poor outcomes and make sure that our customers receive a good service.
  • Reviewed and tested our key communications to ensure they are clear and easy to understand and give the information needed to make effective decisions.
  • Considered how we can best support customers in vulnerable circumstances.

Building on our commitment to good customer outcomes

At Phoenix we want to help people secure a life of possibilities. Consumer Duty builds on our commitment to ensure we achieve consistently good outcomes for our customers today, tomorrow, and beyond.

The new rules mean we must:

  • Consider the needs, objectives, characteristics (including vulnerabilities) and behaviour of our customers at every stage of the customer journey.
  • Act to deliver good customer outcomes.
  • Understand and evidence whether good outcomes are being met

There are three main elements to the duty:

  • Consumer Principle: act to deliver good outcomes for retail customers.
  • Cross-cutting rules:
    • act in good faith,
    • avoid foreseeable harm for retail customers, and
    • enable and support retail customers pursue their financial objectives.
  • Outcomes from:
    • products and services,
    • price and value,
    • consumer understanding, and
    • consumer support

Together the rules and elements of the Duty give us a clear framework and greater focus to deliver good outcomes for our customers and keep their needs at the heart of everything we do.

You can read more about our fair value approach here.