With the Consumer Duty deadline fast approaching, one in seven (15%) independent financial advisers (IFAs) are still unclear about advising clients on good customer outcomes, research from Opinium has revealed.
Three in five (61%) were somewhat clear about what good customer outcomes look like, while 25% were very clear.
The majority (70%) of IFAs said the regulator has been unclear about its role in the process of developing and implementing the Consumer Duty regulation.
Two thirds (66%) felt the FCA had been unhelpful, and 62% said it has been unresponsive.
A slight majority (54%) also said the FCA has been unreasonable.
The FCA has warned that it will act much faster and more assertively where firms fail to meet the requirements of the duty, and there is increased concern among IFAs about the potential implications.
Almost half (48%) said they were now more concerned about the risk of complaints, investigation, or penalties on their practice – with 10% feeling much more concerned.
Opinium also surveyed adults around their level of knowledge and understanding of Consumer Duty.
Less than a quarter (23%) had heard of it, although 12% of this group admitted that they still did not know what it was. Almost three quarters (72%) had never heard of Consumer Duty.
Awareness was greater among those who received financial advice, with almost three in five (58%) having heard of the duty.
Alexa Nightingale, head of financial services research at Opinium, said: “Consumer Duty affects all financial services firms, many of which will be required to make major changes to adhere to the new rules.
“This will of course have an impact on IFAs and their practices. With the deadline approaching in a week’s time, it’s therefore worrying that 15% of IFAs don’t feel clear about advising clients on what good customer outcomes look like, with a more substantial number being concerned about the potential ramifications they could face.
“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.”
