With less than 150 days until the Consumer Duty launch date on July 31st, new research from Aviva reveals that financial advisers appear relaxed about the impending regulation.
A significant 84% of advisers agree that Consumer Duty feels like a rebranded Treating Customers Fairly (TCF) initiative.
Meanwhile, 41% of advisers have started their preparations, and 33% of firms have yet to appoint a Consumer Duty champion, despite it being a requirement by October 31st last year.
Al Ward, head of Aviva’s adviser platform, warned against viewing Consumer Duty as a simple rebranding of TCF: “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 TCF. The change is much more fundamental than that.”
He emphasised that the Consumer Duty requires a cultural shift and will measure businesses against outcomes, not just actions.
According to the research, a majority of advisers believe that compliance with the Consumer Duty will necessitate significant changes in their processes. In addition, 67% of advisers plan to carry out fresh due diligence on the platforms they use, while 60% expect their due diligence processes to change.
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.”
Aviva has created a dedicated Consumer Duty hub on its adviser website to support advisers as they navigate the new regulations.
