Price and Value

What does the FCA say.

'Retail customers experience harm where they don’t get value for their money. A lack of fair value is unlikely to be consistent with customers realising their financial objectives and firms cannot act in good faith if they are knowingly manufacturing or distributing poor value products or services.’

FCA Expectations and what it mean for you.

Fair Value is more than just price. Value is shown in the suitability of product features that don’t lead to customer harm or frustration, as well as in good communication and customer support.

This outcome states that:

All consumers must receive fair value for the services they receive.
A firm must assess all products and services offered to ensure they are fit for purpose and represent fair value.
A firm must complete a value assessment to prove that the relationship between price paid, and benefits received, is reasonable.
All firms in the distribution chain are responsible for the value of the prices that they control

Actions to Take.

Distributors must:

Review the TMFV to understand the benefits to the target market prior to distribution
Understand all product benefits and limitations
Ensure that any product limitations or other charges added along the distribution line don’t result in unfair value
Ensure their own charges for distributing the product or service represent fair value

What does the FCA say.

FCA Expectations and what it mean for you.

Actions to Take.

Target Market and Fair Value Assessments

FCA Podcast: Price and Value

Outcome Self-Assessment

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