Assessment of value: Unintended Consumer Duty consequences

All parties now have an obligation to consider the value of their proposition

clock • 3 min read

David Ogden explores the unintended consequences of Consumer Duty, specifically looking at assessment of value and the distribution chain

Consumer Duty requires all participants in the distribution chain that delivers products and services to retail clients to pay due attention to the interests of those clients, regardless of the nature of their relationship with them.  But where is the line drawn as to who is responsible for what? Make it too definitive and cracks will inevitably appear; but blur it too much and expect unintended consequences. For example, when looking at model portfolios which are made up of actively managed funds. There are four parties in the distribution chain:  the fund provider, the model portfol...

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