By completing this free course, you will build your knowledge in:
- The science behind sustainability.
- Climate risk, climate finance and non-financial accounting.
- Greenwashing and misinformation.
- How to assess, test, understand and evidence good client outcomes.
- How to deliver good outcomes for the client.
Course Structure
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Course Introduction
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Module 1: The new financial landscape
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We will explore the foundational ideas, key concepts and principles that relate to environmental, social and governance (ESG) concerns. Specifically, we will consider the impact of climate risks on global financial stability.
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Module 2: Financial risks and opportunities of climate change
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We will explore what risks climate change creates for the financial system, the role of the financial system in the transition to a low-carbon world and the opportunities created for investors from this transition.
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Module 3: New regulations
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We will delve into the link between the Consumer Duty regulations, ESG and sustainability, looking at how these integrate into the financial advice process. We will consider:
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Consumer Duty requirements such as informed choice, investment preferences and investment objectives, and how these incorporate ESG and sustainability.
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The new SDR and investment labels regulations.
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The methods to assess your firm’s readiness to build ESG and sustainability into your advice process.
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The practical steps and tools needed to deliver good client outcomes.
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Module 4: Greenwashing and how to spot it
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We will explore:
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What greenwashing is
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Why caring about it matters
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How to detect greenwashing in fund marketing
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How to avoid greenwashing in the advice process.
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Module 5: Impact on the Firm
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One of the key aspects of Consumer Duty is for firms to gather data to demonstrate how they have delivered good client outcomes.
Therefore, firms must have a process for recording all aspects of the advice process. This provides the key management information (MI) needed by senior management to identify, monitor and confirm they are satisfied that their customers’ outcomes are consistent with the Duty. This module introduces some of the tools to assess ESG, sustainable and values-based investment options for clients.
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Module 6: Impact on the client journey
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We will examine the client journey and the role that you as an advisor have in working alongside your client. In addition, we are specifically considering how you can grow into an advisor who is an expert at guiding clients through the sustainable investment landscape.
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Live webinar
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During the course, you will be able to participate in a live webinar where you can engage with your instructor, guest speakers and fellow participants.
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Personal Project
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The personal project is the culmination of your learning journey, providing a practical and comprehensive application of the principles covered throughout the programme. This project will empower you with the skills and knowledge needed to analyse real-world scenarios and make informed decisions in the financial advisory context.
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Upon completion you will:
- Receive an online badge that you can post on your social profiles
- Be awarded a certificate from King’s College London and will earn Continuing Professional Development (CPD) points, which demonstrates your competence and credibility in providing better advice and service in line with your clients stated values and preferences
- Become a member of the King's Business School Executive Education Alumni Community, which gives you access to events and thought leadership from King's Business School, plus discounted rates on future executive education short course bookings
Terms and Conditions for executive short courses.
Who is this course for?
This course is suitable for working professionals who want to build their understanding of the UK Financial Conduct Authority’s new Consumer Duty. Participants include:
- Financial advisors (independent and tied)
- Paraplanners
- Compliance professionals
Whilst the course is free, your acceptance is not guaranteed. There are limited spaces on the course therefore we are triaging applications based on applicant suitability and operating limits on number of participants per company.
To discuss whether the course is right for you please free to contact the team for an informal discussion:
Nicole Yee, Client Relationship Manager at King’s Business School at execed-business@kcl.ac.uk
Financial Conduct Authority's New Consumer Duty: What to know
The Financial Conduct Authority's (FCA) new Consumer Duty sets higher standards for firms to ensure good outcomes for consumers in the financial services industry. Here's some key information:
The Duty components
The Duty is comprised of the following components:
- A Consumer Principle which reflects the overall standard of behaviour we want from firms and which is defined further by the other elements of the Consumer Duty.
- The 'cross-cutting rules' which: a) develop our expectations for behaviour through three overarching requirements that explain how firms should act to deliver good outcomes and apply across all areas of firm conduct, b) inform and help firms interpret the four outcomes
- The ‘four outcomes’ which are a suite of rules and guidance setting more detailed expectations for firm conduct in four areas that represent key elements of the firm-consumer relationship:
- The governance of products and services
- price and value
- consumer understanding
- consumer support
Raising the Bar for Consumer Protection
The Duty aims to enhance consumer protection by requiring firms to act in good faith towards consumers and avoid foreseeable harm. It mandates firms to:
- Provide helpful and accessible customer support, making it easy for consumers to switch, cancel, or resolve issues.
- Offer clear and understandable communications, avoiding burying important information in lengthy terms and conditions.
- Ensure products and services meet consumers' needs and provide fair value, preventing unfair pricing or unexpected costs.
- Consider consumers' vulnerability and circumstances when dealing with them.
Putting Customers' Needs First
The Duty emphasises that firms must prioritise their customers' interests and support them in pursuing their financial objectives. This includes:
- Offering suitable products and services rather than pushing unnecessary ones.
- Providing fair value offerings and avoiding ripping off customers.
- Enabling customers to make informed decisions by providing timely and comprehensible information.
Implementation Timeline
The Duty has a phased implementation timeline:
- July 31, 2023: Rules come into force for new and existing open products/services.
- July 31, 2024: Rules apply to closed products/services no longer on sale.
Firms are expected to have implementation plans approved by their boards and to appoint a board-level Consumer Duty champion to drive the necessary changes.
Enforcement and Accountability
The FCA will closely monitor firms' compliance with the Duty and take action against those failing to meet the standards. Firms and their senior managers will be held accountable for delivering good consumer outcomes.
Consumers can escalate issues to the Financial Ombudsman Service if firms do not meet the Duty's requirements.
Module Creators and contributers
Dr Marc Lepere leads Executive Education on ESG & Sustainability at King’s Business School, King's College London. He holds a PhD and MSc from King’s College London, and is an Economics graduate of Trinity College, Dublin. He is a Fellow of the Higher Education Academy.
Marc has published in leading journals, including Stanford Social Innovation Review and the Financial Times, and has appeared on the Discovering Truth podcast (series 1), which was nominated for a Pulitzer Prize. Professionally, Marc has served as Chief Marketing Officer for Havas Worldwide; Executive Vice President for McCann Erickson WorldGroup; and Deputy Chairman of Dentsu in Europe, the Middle East and Africa.
In 2021, Marc’s academic research and experience as an entrepreneur and senior board member inspired him to found Omnevue, where he is Chief Science Officer. Omnevue is a new online platform that makes it easy and affordable for SMEs to get ESG data and reports assured by certified public accountants.
Professor David Aikman joined King’s Business School in April 2020 as Professor of Finance and Director of the Qatar Centre for Global Banking and Finance. Previously, he spent 17 years working as an economist at the Bank of England – most recently in the role of Technical Head of Division in the Financial Stability Strategy and Risk Directorate where he led the Bank’s work on various macroprudential issues.
Between 2013 and 2015, David was seconded to the Board of Governors of the Federal Reserve System in Washington DC, where he worked as an advisor in the Division of Financial Stability. In 2008, David was a Visiting Scholar at the Bank of Japan’s Institute for Monetary and Economic Studies. David has represented the Bank in various international fora, including meetings of the Financial Stability Board, the Basel Committee, and the European Systemic Risk Board.
He is the author of various research papers on financial stability and macroprudential policy, and has a Ph.D. in Economics from the University of Warwick.
Lee Coates OBE is currently part of the FCA’s DLAG (Disclosures and Labels Advisory Group), The FCA’s Advisers Sustainability Group and undertakes consulting work for fund management companies and DFMs on ESG and Sustainable Finance related issues. Lee is also the director of ESG Accord and has years of experience working in the financial services industry.
He was awarded an OBE in 2011 for ‘services to ethical business and finance’. In October 2020, he co-launched ESG Accord, an adviser support business assisting firms to implement robust compliance procedures to meet sustainability preference requirements.
Dr Ylva Baeckström is a Senior Lecturer in Finance at King's Business School. Ylva’s research and teaching interests are in behavioural finance, entrepreneurship, investment decision making and financial advice with a particular interest in gender and inequality in the financial services industry.
Before joining King’s College London, Ylva was the CEO of a Fintech start up. Prior to that she spent over 15 years working for large international banks in London where she headed structured derivatives businesses and managed investment portfolios at institutions such as Standard Chartered Bank, Coutts & Co and Morgan Stanley. Ylva continues to collaborate widely with financial services institutions in the UK and internationally.
Professor Luca Taschini is a Senior Research Consultant, Climate Finance with King's Business School. Luca is an economist with expertise in environmental, energy, and natural resources. He is a Professor of Climate Change Finance at the University of Edinburgh Business School and a Visiting Senior Fellow at the Grantham Research Institute at the London School of Economics
Dr Robyn Klingler-Vidra is Reader in Entrepreneurship and Sustainability at King’s Business School. She is the author of The Venture Capital State: The Silicon Valley Model in East Asia and Inclusive Innovation. Her research focuses on entrepreneurship, innovation, and venture capital and has been published in leading peer-reviewed journals, including International Affairs, New Political Economy and Regulation & Governance. She has delivered executive education for the LSE, Pricewaterhouse Coopers, Tel Aviv University and the UK Foreign and Commonwealth Office and led international studies for the UN Development Programme. She is a Senior Fellow of the Higher Education Academy.
Listen to Professor David Aikman discuss 'Can Finance Save the Planet?' with Emily Farrimond, Sustainability Lead at Baringa, on the King's Business School podcast here: