Consumer Duty - Price & Value Statement

Advocate Finance is committed to ensuring that customers receive fair value from both the products we recommend and the services we provide.

As an intermediary, we assess value by considering the overall benefits, costs and risks associated with a recommended solution, taking into account the customer’s individual circumstances, objectives and available alternatives.

The firm will:

Ensure that any fees charged to customers are transparent, clearly disclosed and proportionate to the work undertaken.
Consider the total cost of the proposed finance arrangement, including lender charges, broker fees, interest costs and any known third-party fees.
Assess whether the recommended product and associated services represent fair value for the customer, having regard to the customer’s needs, objectives and circumstances.
Consider whether alternative products, lenders or funding structures may deliver a better customer outcome where appropriate.
Maintain evidence on file explaining why the recommended solution was considered suitable and represented fair value.
Regularly review fee structures and charging practices to ensure they remain fair, reasonable and consistent with the level of service provided.
Monitor customer outcomes, complaints, feedback and quality assurance findings to identify any indications that customers are not receiving fair value.
Take appropriate action where monitoring identifies actual or potential poor outcomes.

For regulated retail business, advisers must be able to demonstrate that:

The customer’s objective was clearly understood.
The recommended product was appropriate to the customer’s needs.
The overall cost was reasonable in relation to the benefits provided.
Any fees charged by Advocate Finance were fully disclosed and justified.
The customer received sufficient information to make an informed decision.

Advocate Finance recognises that fair value is not determined solely by price. The firm considers the quality of advice, access to specialist lenders, expertise in complex finance transactions, ongoing support throughout the application process and the achievement of suitable customer outcomes when assessing value.

Fair Value Definition

For the purposes of Consumer Duty, Advocate Finance defines fair value as:

“A situation where the overall benefits received by the customer are reasonable in comparison to the overall costs paid by the customer, and where the firm can demonstrate that the recommended solution was suitable for the customer’s needs, objectives and circumstances.“