Vulnerable clients, the end of Tenet’s involvement in the network arena, and procuration fees from product transfers were three of the subjects most talked about by advisers in August on the cherryplc.co.uk industry Forum.
The most popular thread looked at the complex area of vulnerable clients following the introduction of Consumer Duty and its related requirements on 31st July.
There was reportedly a clear and significant frustration within the adviser community, and a fear that the requirements may well have the opposite effect of what was intended.
Many commented about their fears of falling foul of the new regulatory regime, as well as suggesting how matters could be improved.
Another popular thread looked at the demise of Tenet, with some advisers initially shocked by the news that such a long-established player was selling its network business.
There were also wider discussions about the future of networks generally, as well as advisers’ own authorisation strategies moving forward.
Meanwhile, procuration fees were once again a popular topic, resulting in discussions about what they felt was a fair fee for a product transfer.
This was at a time when more mortgage borrowers were turning to product transfers as finding remortgage options were limited due to affordability pressures.
Other popular topics in August included alleged conditional selling by estate agents, high net worth (HNW) mortgage brokers, and the best networks in the market.
Donna Hopton, director at cherry, said: “As the cherry broker forum is a trusted arena for intermediaries to discuss matters with their colleagues across the industry, it will surprise no one that Consumer Duty was at the heart of the most popular thread last month.
“Of course, all advisers want to be able to recognise when clients may be vulnerable and act accordingly but there is a substantial degree of concern and frustration over Consumer Duty ‘requirement interpretation’ around vulnerable clients.
“Not only do advisers fear risks for clients but also for themselves.”
She added: “One can only hope that their voices are heard by those who can effect change, as intermediaries have had very little that is positive to say about this issue.”
