20 Data sharing There are obligations under the Consumer Duty for manufacturers and distributors to share information. Manufacturers need to make available information to distributors on their products / services such as target market and value assessments. Distributors need to share with manufacturers information on customer outcomes such as sales into and outside the target market, information on cancellations and information on the regular reviews of their distribution arrangements. The FCA recognise distribution chains can be long and complicated and that this can cause issues particularly for manufacturer firms obtaining relevant information about customer outcomes. The FCA have commented as follows: ‘Some manufacturers do not have full visibility of the distribution chain or the end customers. Some fund managers, selling via platforms for example, will not know if other distributors are involved or if their funds are being sold outside the target market. In this type of scenario, firms should consider what is reasonable in the circumstances. For example, it may be possible to send a periodic survey to distributors, or ask the next firm in the chain for relevant information, including the identity of other firms in the chain or sales information. If other firms do not provide that information, the manufacturer firm should use any information it does have. But, where there is a complete lack of information and no ability to find it, manufacturers may not need to take any further action.’ Source: FG22/5: Final non-Handbook Guidance for firms on the Consumer Duty (Para 2.23). Manufacturer firms should use all reasonable efforts to obtain the requisite information. Distributor firms are required to share information to support manufacturers when reviewing products or services. Distributors need to co-operate and should reply to all data information requests they receive from relevant parties in the distribution chain, for example platform or discretionary manager, in a timely manner. As a minimum, distributors may need to share information confirming that the product or service has been sold into the correct target market together with details of any sales outside the target market with an appropriate explanation. Where appropriate, distributors must inform other relevant parties in the distribution chain if they identify consumer harm or take remedial action following a review of distribution arrangements.
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