What are Fair Value Assessments?
Financial firms are required to carry out Fair Value Assessments to assess if their products meet the needs of their target markets, while helping to deliver good outcomes. They also ensure that consumers pay a reasonable price for a product when compared to the benefits they receive from it.
Fair Value Assessments can help you meet the Consumer Duty's Price and Value requirements, as they help you see the benefits of a product or service, and determine which clients it might be suitable for depending on their needs.
Our approach to Fair Value Assessment
In line with the higher and clearer standards outlined in the Consumer Duty, we developed our Customer Outcomes Framework. Product reviews are performed in line with the outcomes defined in this Framework to ensure they continue to provide fair value.
We have assessed fair value for our open and closed book products.
Open book: We’ve carried out in-depth reviews of our individual pensions, workplace pensions and protection products to ensure they offer fair value. The results are presented with clear and transparent information about each product.
In each Fair Value Assessment you’ll find:
- An in-depth product description
- The product’s distribution strategy
- Who the product is designed for
- Who the product is not designed for.
The aim is to help advisers make informed decisions about fair value when recommending our products to their clients.
Closed book: We have applied the same diligence we used to assess our open book products to our closed book. While we are not required to share the value assessments for closed book products as they are not being sold or distributed, we can confirm that our closed book products and services comply with Consumer Duty principles. They are designed to deliver good customer outcomes and, through our reviews, we have made improvements, including to communications and in our customer service processes. We want to assure that our closed book products continue to meet the long-term needs of your clients.
Our Fair Value Assessments
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