Fair Value Assessment

With the introduction of the Consumer Duty in July 2022, the FCA introduced updated rules and guidance relating to product governance, specifically the measurement and monitoring of Fair Value for customers. Cignpost is committed to continually assess and monitor our products to ensure they represent fair value to our customers.

Approach

The launching or changing of our products is governed through our development process. Before we launch a product, we assess the following:

Assessment of costs and charges to ensure they represent fair value
Identify the target market for each product
Ensure distribution aligns to the target markets needs
Consider characteristics of any potential vulnerability of the target market
Ensure communications are clear, transparent and timely

We don’t stop once a product is launched. After a product is launched, we continually assess whether it represents fair value for our customers:

Claims are reviewed to ensure the product performs as expected
Complaints are driving change through root cause analysis
Service delivery is as expected by our customers
Communications have been clear, transparent and timely
Commission is appropriate for the service received by the customer

Product	Value Assessment Outcome
CignpostMe	Provides fair value