Consumer Duty Fair Value Statement
Product name: Packaging Service
Information sheet produced: April 2023 (v.1)
Our approach to meeting the Products & Services Outcome and Price & Value Outcome – information for distributors of the Product
This summary document is being provided to you to fulfil our responsibilities under PRIN 2A.4.15R and PRIN 2A.3.12 R (2).
It is designed to help you to comply with your responsibilities under PRIN 2A.3.16 R and PRIN 2A.4.16 R. Please note that you are ultimately responsible for meeting your obligations under ‘The Consumer Duty’.
This information is intended for intermediary use only and should not be provided to customers.
1. Summary of our assessment
We have assessed that:
- Our Packaging Service continues to meet the needs, characteristics, and objectives of customers in the identified target market.
- The intended distribution strategy remains appropriate for the target market.
- The Service provides fair value to customers in the target market (i.e. the total benefits are proportionate to total costs).
2. Service characteristics and benefits
The Service proposition is designed to meet the needs of the target group, most notably the need to work with lenders with whom member firms have a limited relationship and/or understanding of their process, or with lenders that choose to distribute their products through packagers.
The service features are designed to provide support:
- On-site and dedicated underwriters provide support not available directly to member firms
- Dedicated team handling processing of applications
- Reduced lender processing times
- Increased training and development support from lenders to constantly improve our service
- Access to packager exclusive products
- Additional support in the event of sickness or annual leave providing direct communication with the client to continue progressing the application – no advice given.
3. Target market assessment and distribution strategy
Our target market is Mortgage Intermediaries, both Directly Authorised and Appointed Representatives of Networks who choose to become a member of Dynamo for Intermediaries. New member firms will need to be FCA authorised and have up to date ICO registration.
We aim to offer our packaging service as an enhancement to our member firms’ processes allowing them to provide the end client with a smooth and speedy mortgage application journey.
We provide a packaging service for a panel of lenders whose target market will be varied and it is the member firm who provides advice and is responsible for assessing if the chosen lender represents the right outcome for their client.
4. Customers with characteristics of vulnerability
We considered the needs, characteristics, and objectives of customers with characteristics of vulnerability at all stages of the packaging service.
We have in place a framework to achieve good outcomes for vulnerable customers, which includes:
- Education and training for our staff to ensure they have the appropriate skills and experience to recognise and respond to the needs of vulnerable customers.
- Suitable customer service provision and communications.
- Flexible policies, where appropriate, to support vulnerable members.
- Monitoring to ensure we continue to meet and respond to the needs of customers with characteristics of vulnerability.
Member firms using our packaging service should continue to comply with their obligations to ensure that they treat customers in vulnerable circumstances fairly.
Please contact us if you need any further information about how we support the needs of all our customers in relation to the packaging service.
5. Our assessment of value
We have conducted an analysis of the work involved in providing our packaging service and compared turnaround times between a direct submission by a club member and through ourselves.
Our fair value assessment has considered the following:
- Benefits: The range of features that the Service provides and the level of customer service that is provided.
- Price: The fees and charges customers pay for the Service, comparable market rates, and non-financial costs associated with operating the Service.
- Costs: The cost of funding the Service.
- Limitations: Any limitations on the scope of the Service we provide.
Results of our assessment
Our assessment concluded that the Service continues to deliver fair value for customers in the target market for the Product.