Consumer Duty Alliance

Golden Oak Wealth Management are proud to have joined the Consumer Duty Alliance.

The Consumer Duty, introduced by the Financial Conduct Authority (FCA), came into force on 31 July 2023 and is centered around setting higher and clearer standards of consumer protection in financial services.

The Duty means that you should get:

the support you need, when you need it;
communication that you understand;
products and services that meet your needs and offer fair value.

The Alliance has been set up in turn as a not-for-profit, independent membership body that aims to support the personal finance sector in the adoption and implementation of the FCA’s Consumer Duty requirements, through the alliance of like-minded individuals and firms.

The Consumer Duty Alliance also incorporates the Financial Vulnerability Taskforce and the adoption of the Financial Vulnerability Charter. This is a separate body, whose ultimate purpose is to promote greater UNDERSTANDING, encourage appropriate BEHAVIOURS and establish GOOD PRACTICE in respect of consumer vulnerability.

It too acts as an informed source of positive influence on policy makers, professionals and the general public alike. We hope that professionals working across the personal finance sector are increasingly seen as a ‘safe pair of hands’, especially by those who find themselves in vulnerable circumstances.

Why the Consumer Duty Alliance is needed

A body such as the Alliance is needed to coordinate, share and promote understanding and good Consumer Duty practice for the benefit of the wider market. It is also ideally placed to work for the sector with regulator and other groups.

The Alliance’s mission is to inspire and increase public confidence and trust in the financial advice and planning sector through the delivery of consistently good consumer outcomes, so consumers view Alliance members and the wider sector alongside other professional services as a ‘safe pair of hands’.

As an Associate of the Consumer Duty Alliance, our firm shall, always:

Act in good faith in all dealings with clients.
Always avoid causing foreseeable harm to clients.
Inform, empower and support clients to pursue their financial needs, objectives and aspirations.
Fully disclose, clearly explain and consciously mitigate any conflicts of interest identified in our dealings with clients, including where commercial interests might conflict with a client’s best interests.
Only offer products or services that are both suitable and needed, offering fair value and transparent pricing.
Ensure clients receive the support they need, when they need it.
Embrace a focus on customer vulnerability including adherence to the Consumer Charter of the Financial Vulnerability Taskforce.

You can find out more about the Consumer Duty Alliance here.

Consumer Guide to the Consumer Duty Alliance

What to expect from firms and advisers who commit to the Financial Vulnerability Charter

We can all find ourselves in vulnerable circumstances at some time in our lives; through unexpected events such as illness, loss of employment, divorce or even the sudden acquisition of wealth through inheritance or a lottery win.

You can be confident when dealing with a firm or adviser who has made a commitment to the Charter that they will use their best endeavours to provide you with a service that recognises your unique circumstances, and delivers the same outcomes that you would expect if you were not in vulnerable circumstances.

Firms and advisers who adopt the Charter agree to abide by nine statements, which are outlined below.

You can find out more about the Financial Vulnerability Charter here.

We acknowledge that as our services often involve the application of specialist and technical financial knowledge, this places many clients in a position of dependency and as such imposes upon us a greater moral duty to act in their best interests and as a ‘safe pair of hands’, especially to those who find themselves in vulnerable circumstances.

We accept that our professional obligation to use ‘best endeavours’ and place our clients’ interests above our commercial interests have a greater significance to clients who are in vulnerable circumstances and, therefore, at greater risk of detriment.

We recognise that vulnerability can manifest itself in either physical, mental or emotional form (knowingly or otherwise), is dynamic in nature (short lived or longer term, sometimes permanent, transient, recurring or fluctuating over time) and may be hidden.

When working with clients who seek to access our services, we treat all fairly and regardless of their identity, age, gender, race, sexual orientation, disability, gender reassignment, religion or belief, and guard against making assumptions about individuals.

We believe that language and terminology is important. Vulnerability relates to circumstances and not a category of person. As such, descriptions such as ‘those in vulnerable circumstances’ should be used at all times instead of ‘vulnerable individuals’, except when referring to individuals or groups of individuals where vulnerability is permanent.

We recognise that people in vulnerable circumstances are often unaware of their vulnerability and, if they are aware, might not acknowledge it nor wish to be described as vulnerable. We, therefore, accept our heightened professional obligations towards clients in vulnerable circumstances; and the need for raised awareness, greater sensitivity, and additional technical competencies.

We seek to recognise clients in vulnerable circumstances and encourage all to self-declare if appropriate, safe in the knowledge that we will:

Adapt our business processes and professional services, so our clients do not suffer detriment at any point as we seek to deliver outcomes at least as good as for those who are not in vulnerable circumstances.
Maintain confidentiality and ensure our behaviours are fully compliant with all relevant legislation including The Equality Act (2010), Consumer Protection regulations, The Mental Capacity Act 2005 and data protection including GDPR.
Embed the above as ‘business as usual’, part of our raison d’être and not part of a separate compliance or ‘stand-alone’ exercise.

We seek to enable all members of our organisations to deal compassionately, empathetically and effectively with those in vulnerable circumstances by raising awareness of vulnerability and by providing training to all within our organisations in appropriate methods of engagement and the effective discharge of our professional services.

When we encounter clients in vulnerable circumstances and recognise that they may be in immediate danger of significant abuse or harm, or may need immediate support, we will take action to contact the appropriate authorities to mitigate the risks they face.

Consumer Guide to the Financial Vulnerability Taskforce

Consumer Duty Alliance

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