PRICE VS VALUE: PRACTISING WHAT WE PREACH

So many of our conversations with clients revolve around the Consumer Duty regulations, we know them backwards and inside out.

The bit everyone should have grasped by now are the four core outcomes, or cross-cutting rules as they are catchily entitled. One of them focuses on price and outcome. It requires the fees you charge consumers to be reasonable, compared to the overall benefits received.

Whilst we might not be serving the general public, we believe our clients deserve the same focus on price and value that the FCA demands. So, in a bid to practise what we preach, we thought we would turn the spotlight inwards and demonstrate just how our services add value to your business.

A realistic approach to regulation

Consumer Duty put the onus on firms to challenge themselves to determine if the products and services offered are a reasonable balance of cost vs benefits. To do this, we advocate carrying out a value assessment by putting yourself in the consumer’s shoes. This looks at a number of factors, such as how value is perceived by various clients, what is driving price and whether internal costs are rising over time.

No business is immune to these factors and B-Compliant is no exception. Since our inception, we have enjoyed a rapid period of growth. One of the key challenges has been maintaining service levels and price points, whilst the team expands and running costs increase.

As we’re fond of saying, there is no point being the most compliant firm in the bankruptcy court. We remain realistic about the cost burden compliance poses, particularly on small firms.

By rolling up our sleeves and getting stuck into your regulatory obligations, we aim to relieve some of that burden. This is our whole business proposition. When a new client comes along, our first job is to learn as much as we can about the firm and complete an analysis of the current compliance situation. We can then tailor-make a package of services we think is a fair reflection of the support required. That can vary from access to our helpdesk and document library, to regular onsite visits from our consultants, who will work as part of your team.

We endeavour to be as transparent with our pricing as possible, as we recognise the financial limitations small businesses face.

Value at work

Last year, we met London-based Mulberry Bow through a mutual acquaintance. The firm had an arm’s length relationship with a compliance consultancy, but due to growth in its team, more direct input was needed.

We began with a discovery day, which highlighted the firm’s training and competency scheme was an area that required work. We subsequently wrote a path to competency for a newly qualified adviser and our consultants carried out monthly one-to-ones to monitor his progress. The firm was also encouraged to be more systematic in its file reviews. This was an initial challenge, but it is now operating as efficiently, if not more so, with increased standards.

Simon Bullock, Mulberry Bow’s executive director, said: “To replicate this level of compliance and risk quality in-house would cost us significantly more. We can dial up or down the support we receive, as required.”

Mulberry Bow may be relatively new to the B-Hive, but we are forging a great relationship with its team. We are very proud of the bonds that grow between us and the clients who appreciate the value we add to their business.

Hertfordshire’s Smith and Wardle Financial Planning has worked closely with Vicky Pearce, our director, since it was founded in 2020. By its own admission, the firm is very reliant on B-Compliant, as we take the stress out of ensuring it stays up to date with FCA regulation.

Despite being experienced advisers, partners Jonathan Smith and Helena Wardle lacked the relevant knowledge to fulfil the SMF16 requirements. This culminated in Vicky taking on the SMF role. “Without Vicky’s intervention, we wouldn’t have been authorised” states Helena. “She and her colleagues were very reassuring at a highly stressful time.”

To date, Vicky still acts as Smith and Wardle’s SMF officer, spending one day a month at the firm. We provide another day a month in regulatory assistance, along with frequent support calls.

Guiding principles

As these examples show, our clients recognise the value in our experience, plus our sector and regulatory knowledge. Most of all, they appreciate our willingness to get the job done on their behalf. We help firms identify weaknesses in their compliance strategies, develop frameworks to improve systems and processes and implement them, offering as much or as little support as they require.

In each case, we put a compliance monitoring plan in place that is reviewed regularly. It becomes the backbone of our relationship with clients. Why? Because it gives us a reference point to ensure all necessary work has been done and signposts future regulatory changes and key dates.

If you’d like to know more about how we add value to our clients, read the examples cited above in full – and others – in the testimonials section of our website. If you are in the process of reviewing your compliance support and would like to talk to our team about your needs and the challenges, don’t hesitate to contact us on (0161) 521 8641 or email: info@b-compliant.co.uk