How does the Gold Standards judging process work?

How does the Gold Standard Awards set about trying to judge companies in a way that removes as much subjectivity as possible from the process? First, we identify five areas that are key to consumers and professionals when buying financial products and services – financial strength, capability, service, fair value and trust.

We then set about polling experts within financial services and related sectors, such as the regulators, for their view on how best to determine what makes a good company in each of these five areas. After collating their answers, we are able to work backwards to determine a detailed online questionnaire.

In this questionnaire, entrants are asked to give evidence of, for example, how they deal with customer complaints and how they train their staff. In addition, companies have to supply corporate accounts to demonstrate their financial strength as well as practical examples, such as how they work to improve customer service.

An independent panel of expert judges assess these completed questionnaires and accompanying evidence, with at least three judges assigned to each entry in a bid to reduce the chances of a rogue result.

What does it take to win a Gold Standard Award?

Only UK-based financial services groups or specialist financial companies offering their own products and services can apply for a Gold Standard Award. The 10 categories currently accepted for consideration are fund management, banking, mortgages, independent financial advice, group pensions, individual pensions, healthcare, protection, insurance and offshore life companies.

Products and services can be aimed at the UK retail market directly or via professional advisers and companies wishing to enter the Gold Standard Award scheme must complete a detailed questionnaire, which has been constructed using the knowledge of industry experts and designed to correspond to the key areas being measured. The five key areas measured are:

• Financial Strength: This has been defined in terms of the financial ability of the entrant organisation to meet what its customers reasonably expect through its ability to survive in an appropriate form. The differences between the provider types under consideration will be taken into account. Providers will be rated among their peer sector, rather than as a global population of entrants.

• Capability: This area looks at the overall expertise of the company to conduct the business category entered. Typical elements taken into consideration include business structure, staff expertise and training.

• Service: This assesses the ability of the company to maintain an effective post-sales relationship with the distributor and/or consumer. Typical areas assessed are forms of communication and the available ways for distributors and consumers to interact with ach other.

• Fair Value: This assesses whether the customer is obtaining value for money by comparing charges and benefits against a typical range of products for the category entered. Companies offering specialist products only will be assessed against similar groups.

• Trust: The ability of a company to instil confidence in consumers through the customer experience, the media, advertising and marketing. Judges will be looking for a coherent message, which is transmitted not only to customers but within the company itself. Attention will also be paid to the ethical use of product literature and performance as well as the adoption of corporate governance standards.

Companies entering for a Gold Standard are judged by a panel of experts and entrants are assessed on whether or not they meet the Quality and Standards Benchmark set by the Awards. That benchmark, which may be rebalanced periodically, is set sufficiently high so companies have to achieve higher than standard assessments in all five areas outlined above.

The decision of the judging panel is final and the judges withhold the right not to give awards in categories where the required standard has not been met. The Gold Standard is valid for a one-year period from the date of the Award.