Treating Customers Fairly

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A Cash Management proposition clearly enhances the Treating Customers Fairly Policy because, without it, they are not!


Consider the first 5 of the 6 Outcomes required of any Treating Customers Fairly policy:

  • Outcome 1: Consumers can be confident they are dealing with firms where the fair treatment of customers is central to the corporate culture.
  • Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
  • Outcome 3: Consumers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
  • Outcome 4: Where consumers receive advice, the advice is suitable and takes account of their circumstances.
  • Outcome 5: Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.

Every one of these outcomes are enhanced with an Effective Cash Management Proposition in a regulated business.

  • Outcome 1: Integrating an Effective Cash Management proposition into the advice process demonstrates a level of fairness that most financial advisory firms do not achieve.
  • Outcome 2: Underpinning all advice with an Effective Cash Management proposition meets the needs of ALL consumer groups and can be applied across consumer groups in accordance with their needs.
  • Outcome 3: Providing clients with a true understanding on the value of cash is the most transparent piece of information that is missing from the majority of advice processes. Managing the value of cash each year demonstrates clarity of service post-sale.
  • Outcome 4: Demonstrating the value of cash and helping clients to achieve it is THE MOST SUITABLE way to demonstrate that advice is provided in accordance with the client’s circumstances and requirements.
  • Outcome 5: Cash Management provides the opportunity to offer products that performance the way they are designed. Under-pinning advice with this certainty is the best way to enhance this outcome.

In fact, now consider each of the outcomes WITHOUT and Effective Cash Management proposition:

  • Outcome 1: How can the exclusion of providing the client with a clear understanding of the value of cash, and also the exclusion of helping them to achieve this value, be considered to be fair in any way?
  • Outcome 2: Cash Management should be a proposition and NOT a product. Ignoring the value of Cash in the advice process misleading the client and providing a solution to only the wealthy clients is biased towards a certain segment. Only by providing a Cash Management proposition to ALL CLIENTS can this outcome be achieved.
  • Outcome 3: Providing advice with NO CASH MANAGEMENT SOLUTION is not clear and is not transparent. Providing advice based upon the poor value provided by banks and building societies is misleading the client.
  • Outcome 4: Everybody has cash, and everybody needs cash. How can excluding any form of advice regarding the value of cash be considered to be remotely fair?
  • Outcome 5: It is easy for clients to forget about product performance without a cash management proposition integrated into the advice process. How many times do clients feel that advice has been unsuitable just because the stock market has fallen? Underpinning advice with and Effective Cash Management proposition

Overall, given the examples, it is clear to see the value that an Effective Cash Management proposition has on the Treating Customers Fairly Policy.