8 How to achieve FCA requirements Note Product distributors are not usually involved directly in the design of products, but will play a part in the remuneration arrangements associated with distributing products such as agreeing adviser charges, commission and procuration fees. Distributors do however offer services and are able to influence the design, price and communication of their services. Before looking at the table on pages 8 to 11 it may be useful to reflect on the following service-related questions. The responses to these questions can be used to stimulate debate and inform your firm’s approach to the product and services outcome. • Do you always deliver your basic service promises such as provision of ongoing advice or portfolio valuations, or making contact near the end of a mortgage deal? – If not, is this because of external factors outside your control or due to internal systems and controls? • Do you offer any services that you believe should no longer be offered? • Would you recommend your firm’s services to your friends and family? – If not, why not and what would need to change so that you would feel happier to recommend? • Do you have different service levels to meet the requirements of your target market (clients)? • Do you think any of your services are under- or over-priced? • Do you think any of your services offer particularly good or poor value for your clients bearing in mind that value is about more than just price? • Have you benchmarked the price of your fees against your competitors? – If you charge less for the same service, is there a reason for this and is this sustainable? – If you charge more for the same service, is there a justifiable reason for this? • Are your client retention rates higher or lower than you would like?
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