Cathi Harrison, CEO and founder of The Verve Group, has urged providers, especially compliance providers, to “do better” in adopting the principles of Consumer Duty.
Harrison pointed out that while advisers and planners are often seen as the front line when it comes to implementing Consumer Duty, the responsibility extends far beyond them.
Harrison said: “The reality is that Consumer Duty is not just the responsibility of advisers. It should be a shared responsibility across the whole supply chain particularly for compliance providers who have a significant role to play in shaping the regulatory environment and supporting advisers to meet these obligations.”
Harrison’s call to the industry comes as she launches a new level of compliance service. The new “standard” services gives firms access to a technical helpdesk, in person and online, as well as a directory of guides, templates, bulletins and L&D events which firms have become accustomed to.
“The real difference in this new service isn’t the service itself, but the pricing model, where it is a fixed fee regardless of firm size and status,” said Harrison.
According to Harrison, there are still concerning practices in the industry, particularly from some compliance providers.
“We continue to hear about excessive contract tie-ins, top-slicing of commissions, and providers failing to pass on any savings from file-checking or system efficiencies,” she said. “In a fast-paced, technology-driven world, these practices are increasingly difficult to justify. Providers need to leverage technology to deliver real value to their own clients, rather than using it as an opportunity to boost profit margins at the expense of advisers and their end-clients.”
Harrison added that if all parties involved in the financial advice supply chain, from compliance providers to paraplanners and product providers, worked more closely together, Consumer Duty would become an industry-wide best practice rather than a box ticking exercise for advisers.
She added: “Consumer Duty should be more than just a regulatory requirement. It should be a mindset that permeates every part of the service we provide to clients. It’s about working together to put the consumer at the heart of everything we do, from compliance through to advice, and beyond.”
