Aegon has launched three new guides with NextWealth highlighting how advisers are responding to the Consumer Duty.
As the 31 July deadline approaches, Aegon says collaboration across the distribution chain will be key to delivering benefits not just to consumers but for the industry.
The Aegon guides detail how advisers firms are responding, sharing views and including where and how business models or processes are changing. The guides also include consumer research findings on where they see the value of adviser services, which may help advisers best articulate the value of the advice services they offer.
Steven Cameron, pensions director at Aegon, says: “From the many conversations we’re having with adviser firms on the Consumer Duty, it has become clear that alongside reading the FCA’s extensive material, advisers get real value from understanding how other firms like them are interpreting the requirements in practice. This includes where and how business models are changing on specific areas of focus. Common themes include demonstrating value, communicating with customers and the big question of evidencing you’re meeting the Consumer Duty.
“This is why we asked NextWealth to explore these in more detail with advisers and to produce these three guides.”
Cameron said the Consumer Duty offers advisers the opportunity to show how wide reaching their value is, beyond a product recommendation or investment performance.
“When it comes to supporting consumer understanding, there are many dimensions from explaining the advice service, to the benefits of recommended products and the overarching link to meeting the client’s financial objectives and protecting from foreseeable harm. But complex regulatory requirements and jargon can get in the way.”
According to Cameron, the nature of the firm’s business will influence the ‘right’ suite of MI with lots to be learnt from sharing ideas and experiences.
“We hope the guides will provide adviser firms with that extra support as implementation approaches as they include many practical tips and questions for adviser firms to consider,” he added.
Heather Hopkins, managing director of NextWealth, commented: “When Consumer Duty was first announced, many advisers believed it would be a simple extension to Treating Customers Fairly. It’s become apparent that it’s much more than that. Everyone involved in financial services needs to address the regulation, but financial advisers are in the eye of the storm. These guides aim to simplify and contextualise key information, to make it easier for advisers to take action to be compliant.”
The guides are available on the Aegon Consumer Duty Hub.
