Provider Legal & General has become one of the first corporate members of the new independent professional body, the Consumer Duty Alliance (CDA).
The CDA was launched earlier this month and aims to help advisers and the industry provide better client outcomes by supporting the FCA’s new Consumer Duty requirements.
Along with other CDA members, Legal & General has adopted the CDA’s independent Code of Professional Standards, as well as the consumer facing Financial Vulnerability Charter.
The Consumer Duty Alliance (CDA) will aim to build a “sector-wide alliance” of good practice and a directory of services to support members and the wider market.
The FCA’s new Consumer Duty requirements, requiring firms to provide the best outcome for clients at all times, arrive in July. Keith Richards, former CEO of the Personal Finance Society, will head the new organisation as its first CEO and is supported by a number of experienced industry professionals including former Institute of Financial Planning CEO Nick Cann CFP.
The launch of the CDA follows a Financial Vulnerability Taskforce (FVT) member survey last year. The survey, which looked at the experiences of FVT member organisations in relation to the Consumer Duty, found that 60% of respondents would like clearer guidance ahead of the Consumer Duty implementation deadline on 31 July.
The CDA has excluded commercial activities from its remit, with initial funding support provided by Legal & General and Howdens Brokers as Foundation Affiliates.
Working in partnership with the Financial Vulnerability Taskforce and CDA, Legal & General has supported the launch of the ‘Consumer Duty and Retirement Income target market guide’, which focuses on what actions advice firms might consider taking with the new Consumer Duty, in light of a changing retirement income landscape and evolving consumer needs.
Cecilia Furner, distribution director, retail annuities, Legal & General, said: “At Legal & General, we welcome the new Consumer Duty as it reinforces the importance of consumer protection and drives enhanced outcomes. We have always understood the value of transparency, clear standards and providing products and services that both intermediaries and customers can easily understand and benefit from, and we’re committed to supporting people in vulnerable circumstances.
“With four months to go before the Consumer Duty comes into force, the launch of the CDA is an incredibly timely initiative. We are delighted to partner with the Alliance to share good practice in support of better client outcomes and are committed to working closely with industry peers to ensure effective delivery against the new standards.”
Keith Richards, CEO, Consumer Duty Alliance, said: “The need for an alliance across financial services has the potential to unite the profession in both a pre-and-post consumer duty landscape, which is evident from the significant cross-sector response and encouragement following the launch of the CDA. We would like to thank Legal & General for their support as a Foundation Affiliate, along with their expertise and input to the creation of the Retirement Income guide.”
L&G was established in 1836 and is a major provider of financial services and investment products, managing over £1.4 trillion in total assets under management. Legal & General Retail has 12 million retail policyholders and workplace members. Its workplace pension platform serves 4.4 million members.
