Over two fifths (43%) of advisers have changed their approach to client servicing following the introduction of the Consumer Duty, says Royal London.
Research from the pension provider found that 43% have also changed their approach when dealing with vulnerable customers.
More than a quarter (27%) of advisers said the new regulation had also prompted them to increase the frequency of client feedback requests, while 15% have reduced the number of clients on their books and 13% have changed their investment approach. Just under one in six (13%) said they had not changed anything.
Royal London said the reaction to Consumer Duty had been largely positive, with 52% of respondents saying it had met or exceeded its expectations. However, more than a fifth (23%) disagreed and a quarter admitted they weren’t sure.
Jamie Jenkins, director of policy at Royal London, said: “With the first anniversary of Consumer Duty approaching, it’s interesting to get a snapshot of the impact on adviser businesses and overall perception of whether it has been a success.
“Generally, the change feels positive among most respondents though we can’t ignore the 23% of advisers who don’t think it has met its objectives. It’s a difficult one to speculate on, but we do know of adviser firms who felt they were already meeting the requirements so perhaps some don’t think the change in regulation is relevant to them. The advisers we speak to are, overall, very supportive of the Consumer Duty and what the regulator is trying to achieve in delivering good outcomes for clients. And advisers are clearly very well placed to understand this better than anyone else in the value chain.”
Jenkins said the Consumer Duty is arguably “the most significant piece of regulation” the industry has witnessed for 20 years, seeking to make a cultural shift for the whole industry.
“It has undoubtedly led to changes in the market already and if it hits its mark, it will significantly improve trust in financial services,” he added.
