Seven out of 10 independent financial advisors believe the FCA has been unclear about Consumer Duty, finds survey
July 2023 - Financial Services
Seven out of 10 independent financial advisors believe the FCA has been unclear about Consumer Duty: A survey has found that of the independent financial advisors (IFAs) polled ahead of the July deadline for the implementation of the Consumer Duty, 70% believe the Financial Conduct Authority (FCA) had been unclear.
Two thirds of respondents said that the FCA has been 'unhelpful' while 62% called it 'unresponsive'.
The survey of IFAs was conducted by Opinium using its IFA omnibus, and as well as polling financial advisors it polled UK adults about their understanding of the Consumer Duty.
According to the FCA, the Duty "sets higher and clearer standards of consumer protection across financial services and requires firms to put their customers' needs first."
The survey found that ahead of implementation, 25% of IFAs felt clear about advising customers and what good customer outcomes look like, with 61% saying they are 'somewhat' clear. Just 15% said they do not feel clear.
The research also revealed that almost half the respondents polled said that are now ‘more concerned’, with a further 10% saying they are 'much more concerned' about the risk of complaints investigation or penalties.
Understanding amongst UK adults
When it comes to the average UK person, almost three-quarters said they had never heard of the Consumer Duty, with less than a quarter being aware (23%). That said, although 23% had heard of it, 12% of them admitted to still not knowing what it is.
Of those who receive financial advice, awareness was greater, with 58% saying they had heard of the Duty ahead of its implementation.
Head of financial services research at Opinium, Alexa Nightingale said:
“Feedback on the FCA’s role has not been glowing so far, so it will be interesting to see how the first few weeks of the Duty play out, and whether the FCA can paint itself in a more positive light among the adviser community.”
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