Fair Value Assessment Framework Manual & Template

Elevate your organisation's compliance with the FCA's Consumer Duty by implementing a robust Fair Value Assessment Framework. This comprehensive manual and template provide a structured, customizable guide to evaluating and demonstrating fair value in your products and services, ensuring a reasonable balance between costs and benefits for retail customers. Aligned with the latest regulatory updates as of August 2025, including FS25/2 simplifications and the March 2025 fair value review, this resource empowers financial firms to conduct thorough, evidence-based assessments that mitigate risks, enhance customer outcomes, and foster trust.

Designed for ease of use, this Microsoft Word document (DOCX format) includes detailed chapters, practical templates, examples, and appendices to streamline your assessment process. Whether you're a product manager, compliance officer, or senior executive, this tool helps you integrate fair value principles into your operations while adapting to evolving FCA expectations.

Key Features

• Structured Framework: Step-by-step guidance across 6 core chapters covering introduction, regulatory background, key principles, assessment process, monitoring/review/remediation, and integration with the broader Consumer Duty framework.

• Regulatory Alignment: Incorporates PRIN 2A.4, FG22/5 (Chapter 5), FS25/2 (February 2025 simplifications for proportionate assessments), March 2025 multi-firm fair value review (highlighting equity improvements through holistic evaluations), and Q1 2025 thematic review on sustainable pricing.

• Customizable Templates: Includes a Fair Value Assessment Checklist, Assessment Form, and example completed versions in Appendix C and D for quick implementation and documentation.

• Appendices for Quick Reference: Glossary of terms (Appendix A), referenced policies (Appendix B), FCA resources (Appendix E), and more to support ongoing compliance.

• Practical Examples: Hypothetical scenarios (e.g., insurance bundles, credit cards) illustrating applications, with rationale notes for real-world adaptation.

• Version Control & Usage Guide: Built-in customisation instructions to tailor the manual to your organisation's operations, risk framework, and sector-specific needs.

• Updated for 2025 Insights: Emphasises vulnerability considerations, lifecycle evaluations, proportionality, and data-driven refinements, with noted improvements like 15-24% equity gains from FCA reviews.

Benefits

• Ensure Compliance & Avoid Penalties: Meet FCA requirements for fair value under the Price and Value Outcome, with built-in tools for documentation, monitoring, and remediation to demonstrate accountability.

• Enhance Customer Outcomes: Promote transparent, equitable pricing that balances costs with benefits, reducing inequities (e.g., 18-23% improvements per 2025 reviews) and supporting vulnerable groups.

• Streamline Processes: Save time with ready-to-use templates and methodologies, scalable for low-risk vs. complex products per FS25/2 simplifications.

• Foster Business Agility: Integrate with other Duty elements (e.g., product governance, distribution) for a cohesive approach, enabling continuous enhancement and adaptability to changes like pricing adjustments.

• Build Internal Accountability: Supports SMCR by outlining roles for staff, senior managers, and third parties, with clear links to cross-cutting obligations.

• Proven Best Practices: Draws from FCA guidance to demystify assessments, incorporating holistic factors, market benchmarking, and MI dashboards for measurable results.

Who It's For

• Financial services firms regulated by the FCA including banks, insurers, investment firms, and lenders operating in the UK retail market.

• Roles such as compliance/risk officers, product/pricing teams, senior managers (SMFs), and governance professionals are involved in Consumer Duty implementation.

• Organisations handling new, existing, open, or closed products/services, with applicability to co-manufacturers and distributors as of March 2025 review.

• Ideal for firms seeking to align with 2025 updates on bundled products, vulnerability-inclusive pricing, and sustainable models.

What's Included

• 1 x Customizable Microsoft Word Document (DOCX): Full manual with chapters, appendices, templates, and examples.

• Embedded Guidance: Version control, customisation tips, and usage instructions (remove before finalising).

• Digital Delivery: Instant download upon purchase for immediate use.

Licence and Usage Terms

This template is licensed for internal use within your purchasing organisation only. Redistribution, resale, or transfer without prior written consent is prohibited. For full terms, refer to the included Instructions document.