What is Consumer Duty?
The FCA introduced the Consumer Duty in July 2023 to seek to improve the quality of products and services to retail investors. The Consumer Duty sets the standard of care that companies should give to customers in retail financial markets. Principle 12 states that a company must act to deliver good outcomes for retail customers.
While Edinburgh Investment Trust is not directly within the scope of the regulation, Liontrust is in scope through its roles as AIFM and distributor of the Company.
Edinburgh Investment Trust and Liontrust are committed to delivering against Principle 12, and this includes adhering to the cross-cutting rules across the online and offline investment journeys. When working with third parties, Edinburgh Investment Trust must act in good faith towards shareholders, avoid foreseeable harm to shareholders and enable shareholders to pursue their financial objectives.
FCA Consumer Outcomes
There are four consumer outcomes:
- Products and services
- Price and value
- Consumer understanding
- Consumer support
Cross-cutting rules:
- Act in good faith toward retail customers
- Avoid foreseeable harm to retail customers
- Enable and support retail customers to pursue their financial objectives
Consumer understanding and consumer support outcomes
Edinburgh Investment Trust is focused on providing communications and content that is understandable and accessible to all shareholders, including those who may have characteristics of vulnerability. This includes updates on Edinburgh Investment Trust, the latest views and insights of the portfolio managers, and educational articles.
Edinburgh Investment Trust tests articles, literature and its advertising with retail investors through an independent research company. This provides feedback on whether retail investors understand the communications, literature and content; what they find interesting and useful; and what else they want to be given and informed about.
We welcome feedback directly from shareholders on our communications and literature.
Vulnerability and accessibility
We have made improvements specifically around vulnerability and accessibility. These include:
- Training on Consumer Duty. This includes specific consideration of retail investors with characteristics of vulnerability.
- Accessibility tools have been added to this website, please let us know if you require further help with accessibility.
Monitoring outcomes
Edinburgh Investment Trust and Liontrust measure levels of harm and confirm whether consumer outcomes have been met.
