Fair Value Assessment Outcome generation
A Fair Value Assessment Outcome document is a report produced by financial services firms to demonstrate that their products and services provide fair value to retail customers, as required by the Financial Conduct Authority's (FCA) Consumer Duty regulations in the UK. It shows that the price a consumer pays is reasonable in relation to the benefits they receive.
Document your fair value assessments with confidence.
Problem:
Creating Fair Value Assessment Outcome documents requires careful documentation of assessment methodologies, results, and conclusions. Manual processes using word processors make it difficult to maintain consistency, ensure all required elements are included, and keep documents up-to-date with regulatory changes.
Solution:
Ultradoc provides a structured approach to creating Fair Value Assessment Outcome documents. Our platform ensures all required sections are included, maintains consistency across assessments, and simplifies the documentation process.
FCA Consumer Duty compliance.
Ensure your products provide fair value to consumers.
Purpose
The document's primary purpose is to evidence a firm's compliance with the FCA's "Price and Value" outcome, one of the four key outcomes under the Consumer Duty. It is an internal governance document used by a firm's board and shared with its distributors and the regulator to show due diligence and ensure good consumer outcomes are being met across the product lifecycle.
Key Components
A typical Fair Value Assessment Outcome document generally includes: Product Description, Target Market identification, Pricing and Costs assessment, Benefits Analysis, Distribution Strategy details, Outcome Analysis across customer segments, and Governance and Remediation information.
Comprehensive documentation requirements.
Product Description
An in-depth description of the product or service, its nature, and its benefits and limitations.
Target Market
Identification of the specific consumer group(s) the product is designed for and who it is not designed for.
Pricing and Costs
An assessment of the expected total price the customer will pay, including all fees, charges, and any non-monetary costs (e.g., time and effort).
Benefits Analysis
An evaluation of the quality and benefits the customer can reasonably expect to receive, often using quantitative and qualitative metrics.
Distribution Strategy
Details of the distribution arrangements and how remuneration across the distribution chain ensures the product maintains fair value for the end consumer.
Outcome Analysis
An analysis of differential outcomes across different customer segments (including vulnerable customers) to ensure no specific group receives poor value.
Governance and Remediation
Information on the monitoring, review processes, and the actions the firm will take if a product is found not to provide fair value.