Fair Value Assessment Framework and Principles

This document is a guide that outlines the fair value assessment framework and principles employed by Phoenix Group in accordance with Consumer Duty. It details the rationale for assessing fair value for both open and closed product groupings, emphasizing the importance of delivering good customer outcomes. The guide explains that fair value is defined as the relationship between the cost of a product and the benefits that a retail customer can reasonably expect. It describes the three pillars of fair value assessment: financial value, non-financial value, and price benchmark, and highlights the metrics used to evaluate these aspects. The document also presents the core tests for fair value principles, which include benefits and costs, customer support, and design and distribution. Additionally, it outlines the process for identifying areas of concern in assessments and the actions taken if a product is found to not offer fair value. Overall, the guide emphasizes the commitment to transparency and customer support throughout the product lifecycle.