News
Advisers say client servicing most changed ahead of Consumer Duty anniversary – Royal London
Some 43% of advisers have changed their client servicing approach because of Consumer Duty obligations, a poll from a mutual found.
A bi-annual adviser survey from Royal London found that since Consumer Duty came in, 27% of advisers increased the frequency of client feedback requests, while 15% cut the number of clients on their books.
A further 43% adjusted their approach in dealing with vulnerable customers.
Conversely, 13% of advisers said they made no changes in light of Consumer Duty.
Consumer Duty meeting expectations
According to the Royal London poll of 528 respondents, 52% felt Consumer Duty had met or exceeded its objectives.
How the housing landscape is set to shift
Sponsored by Halifax Intermediaries
A fifth, 23%, of advisers were less convinced and said the rules had not met or exceeded objectives. A quarter were unsure of the impact of Consumer Duty.
The Consumer Duty rules came into effect on 31 July 2023 with the aim of reducing consumer harm and delivering good customer outcomes. The first stage of the rules applied to open book products and services, while the rules must be applied to closed book products and services by the end of this month.
A significant piece of regulation
Jamie Jenkins, director of policy at Royal London, said: “With the first anniversary of Consumer Duty approaching, it’s interesting to get a snapshot of the impact on adviser businesses and overall perception of whether it has been a success.
“Generally, the change feels positive among most respondents though we can’t ignore the 23% of advisers who don’t think it has met its objectives. It’s a difficult one to speculate on, but we do know of adviser firms who felt they were already meeting the requirements so perhaps some don’t think the change in regulation is relevant to them.”
He added: “The advisers we speak to are, overall, very supportive of the Consumer Duty and what the regulator is trying to achieve in delivering good outcomes for clients. And advisers are clearly very well placed to understand this better than anyone else in the value chain.
“The Consumer Duty is arguably the most significant piece of regulation we have seen for nearly 20 years, seeking to make a cultural shift for the whole industry from simply treating customers fairly, to treating them well. It has undoubtedly led to changes in the market already, and if it hits its mark, it will significantly improve trust in financial services.”