What makes a good fair value assessment?

"Fair value is rapidly becoming the litmus test for how well firms understand their customers and the outcomes they deliver." Jason Wassell provides lessons from the first two years of the Consumer Duty.

Jason Wassell is chief executive of the Consumer Credit Trade Association (CCTA), www.ccta.co.uk, which represents the interests of smaller and specialist lenders across the United Kingdom. Jason leads engagement with policymakers, regulators and members on key issues - including the FCA's Consumer Duty - supporting firms with compliance and adapting to evolving regulatory expectations.

As we approach the second anniversary of the Consumer Duty, there is one area where leadership and compliance teams continue to seek clarity: fair value. Of the Duty's four outcomes, it arguably started as one of the least defined - yet it is fast becoming one of the most scrutinised. The Financial Conduct Authority has made its expectations clear in theory, but the industry still has questions about interpretation and implementation in practice.