Aviva’s poll of 1,003 advisers found that eight out of 10 felt the new rules were just a reworking of existing regulations.
This is despite the Financial Conduct Authority’s (FCA) Theresa Chambers insisting that Consumer Duty was not a “re-expression of Treating Customers Fairly” earlier this year.
Some 41 per cent of respondents said they had started preparing for the rules while a quarter said they had not, but they knew what needed to be done. Some 17 per cent said they were not concerned about Consumer Duty.
Advisers agreed that complying with Consumer Duty would require significant changes with 67 per cent saying they will be carrying out new due diligence on the platforms they use. Some 60 per cent said their due diligence processes would change.
Not a main concern
Of the 14 areas of concern in the market, advisers ranked Consumer Duty as 11th on their list of priorities. Inflation was the most important consideration, as mentioned by 39 per cent of respondents.
This was followed by 34 per cent of advisers who said the energy crisis was more important and 32 per cent who cited the recession.
‘The biggest shift in regulation’
Al Ward, head of Aviva’s adviser platform, said: “The Consumer Duty arguably represents the biggest shift in the regulation of financial services in more than a decade. It puts customers at the heart of all our businesses. It would be misguided to see it as a rebranding of Treating Customers Fairly. The change is much more fundamental than that.
“In the words of the FCA, the Consumer Duty ‘raises the bar’. I agree. It is demanding a cultural shift that truly places the customer at the heart of everything we do. And, crucially, it will measure us against outcomes, not just actions.”
Ward added: “One of the most important changes that the Consumer Duty will demand of us is that we must provide evidence that we are delivering good outcomes. Whilst it’s encouraging to see a majority of advisers anticipating significant changes in their customer processes, I would invite advisers who feel no change is necessary to reconsider.”
