Strategic Report
Governance Report
Financial Statements
Other Information
We have developed a Consumer Duty MI dashboard to help embed a business-wide focus on delivering good client outcomes whilst also providing a clearer insight into areas that may have the potential to result in poor outcomes so that these can be investigated further, and action taken as necessary. Closely monitoring our activities and the outcomes that clients are receiving and proactively taking action to address any potential risks to good outcomes helps to ensure that we are providing good client outcomes, complying with the new rules and can demonstrate this to the FCA and other stakeholders. Consumer Duty remains a top priority for Brooks Macdonald and we will continue to take guidance from industry bodies and the FCA to ensure that our products and services are compliant with the Duty and that we act in the ways the regulator would expect when providing services and support to our clients.
Duty will help drive social and environmental sustainability, benefitting both the community and environment, whilst also delivering on our financial objectives and helping our customers to achieve their own.
or relevant issues arise which could potentially include distribution issues or poor outcomes.
Our performance management framework measures employee behaviours against our Guiding Principles which are designed to articulate the Company’s values. As well as evaluating performance against objective outcomes, we also review performance against the Guiding Principles to ensure that what we do and how we do it are both aligned to Consumer Duty. One of the non-financial areas of focus is ‘Client’ which includes metrics focused specifically on client outcomes. Another is ‘People’ which has metrics that focus on client needs and client service to ensure that employee performance is evaluated against our focus areas, including delivering strong client outcomes. All employees have undertaken training on Consumer Duty and vulnerable clients with additional face-to-face training delivered to targeted teams. We plan to launch a dedicated Consumer Duty pulse survey to capture employees’ views and obtain candid feedback on how in practice they see their role and the firm’s performance in supporting the delivery of good customer outcomes and checking whether all staff understand their responsibilities under the Duty.
Shareholders The impact of Consumer Duty can help have a positive impact on shareholder value by fostering an enhanced culture of trust and integrity in financial services firms. As Brooks Macdonald continues to demonstrate its commitment to Consumer Duty, shareholders can expect improved business performance, attracting and retaining clients in areas that benefit them, and enhanced brand reputation. In the long run, enhanced standards of conduct across the industry should also reduce regulatory costs to firms through fewer complaints and lower redress. The emphasis on fair treatment and transparency will attract responsible investors who prioritise ethical business practices and shareholders will benefit from more sustainable and resilient financial institutions.
Advisers
Advisers play a crucial role in the financial decision-making process for our mutual clients. Consumer Duty emphasises the importance of providing suitable and tailored advice that meets the individual needs of clients. Brooks Macdonald recognises the important roles that well-trained and ethical advisers play in this process. Through our Consumer Duty focused work, Brooks Macdonald will continue to ensure that the advisers we partner with have the tools they need to advise and support clients and that they are equipped with the necessary knowledge to help deliver good outcomes for their clients. The Consumer Duty toolkit page on our website supports advisers with meeting their own regulatory requirements and helps them make informed recommendations about our range of investment products and services. We also have a Vulnerable Clients toolkit on our website providing resources to help advisers easily guide their clients through financial scenarios and help them better understand and tackle the issues behind client vulnerability so that their clients can make informed decisions. We have, and will continue to obtain, distributor feedback to assist us in our product review process, and to enable distributors to provide data real-time to us as and when specific events
Community and environment
Employees
Brooks Macdonald acknowledges its responsibility towards the community and environment. By prioritising Consumer Duty, the Company commits to promoting responsible financial practices that align with sustainable development goals. This includes offering environmentally friendly investment options and supporting initiatives that contribute positively to the local community. Our Responsible Investment Service (“RIS”) is already a demonstration of Brooks Macdonald’s focus on sustainability factors throughout the advice and portfolio management process. Brooks Macdonald’s adherence to Consumer
Consumer Duty is closely tied to an organisation’s internal culture, values, and the treatment of its employees. Our performance management framework has been aligned with the requirements of Consumer Duty, with each of the guiding principles being mapped to both the FCA’s new Consumer Principle and the cross-cutting rules. This helps form the basis for how we will continue to embed Consumer Duty into the business via recruitment, individual development plans and employee compensation.
Brooks Macdonald Group plc Annual Report and Accounts 2024
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