How tailored investments deliver on “fair value”

In the words of Sheldon Mills, executive director at the FCA, "Consumer Duty is not all about price... We want to see inclusive, sustainable growth, where consumers have appropriate access to products and services that meet their needs."

So, what does this mean for advisers? Put simply, investment propositions built with a “one-size-fits-most” mindset will no longer cut it. 

To demonstrate fair value under Consumer Duty, advisers need to show that their services are priced fairly in relation to the benefits provided. But what this means on a case by case basis can be a little unclear. 

What’s clear is that adding more value for your clients is no bad thing. Involving you in the product design or investment process to ensure that your clients' needs are more closely met brings value.

You also need a partner DFM that evidences how they bring a robust and sophisticated process to your investments through intelligent risk monitoring and governance, clear and easy to understand communication for your clients, and a specialized team of  investment experts.

What is apparent, is that meeting these requirements with a cookie cutter approach is nearly impossible. That's where tailored investment solutions come in.

By partnering with a flexible Discretionary Fund Manager (DFM) like FE Investments, advisers can create bespoke investment propositions that are built around their specific client base and business model. This allows for much closer alignment between the services provided and the needs of the end investor.

At FE Investments, we work hand-in-hand with advisers to understand their unique challenges and design tailored solutions that meet their exact requirements. Whether you're looking to outsource your entire investment process or just leverage our expertise in specific areas, we can help you build a proposition that delivers unbeatable value to your clients.

So, if you're still relying on a standard “one-size-fits-all” investment solution, now is the time to rethink your approach. Book a consultation with our team today to explore how a tailored solution could help you thrive under Consumer Duty.