Hymans Robertson is warning advisers to recognise the role of communications in delivering value for money under Consumer Duty
Over a third of investors (37%) said they would use the quality of communications from their IFA to assess their advisers’ performance, according to research from Hymans Robertson Investment Services (HRIS).
This highlights how important it is for advisers to assess their communications before the Consumer Duty deadline, the DFM said. An assessment will help them understand if their communications meet the needs of their clients, but also identify how they will impact their ability to meet one of the regulation’s key requirements of providing value for money.
The research, on what consumers who use financial advisers feel about the communications they receive, also highlights things advisers may want to consider, the DFM said.
More than a third (37%) of consumers say they would like a summary of key points added to the communications they receive, and a quarter would like less jargon (25%), showing that when it comes to value for money or general understanding, the format of the content provided is just as important to many consumers as content.
William Marshall, chief investment officer at HRIS said: “For many firms, preparing for the Consumer Duty’s implementation deadline has been one of the biggest undertakings they’ve had to take on for a long time. A key part of the regulation is being able to demonstrate that the service they’re providing clients offers value for money. By this point advisers are likely to have a firm grasp of their Consumer Duty-related processes and frameworks that they’ll use for monitoring and outcome-related record keeping. It’s important for them to have factored in how they will evidence this, and also that they’re aware if their communications are suitable for the intended audience.
“This is particularly important in times of economic stress. Communications have a key role to play in helping consumers have confidence that they are getting value for money. It will also make them feel supported and well informed and, most importantly, as an aid to make the right decisions at the right time.
“The FCA’s final guidance covers communication throughout. A main takeaway is that advisers need to ensure the materials they provide are appropriate for their target audience, are clear and make the right considerations for behavioural aspects.
“Although this regulation is untested, firms who have taken preparation seriously and developed a plan which they can follow will be in a strong position. They’ll be able to identify how they’re offering value for money for their clients through things like their communications and also importantly be able to evidence this as part of their compliance.”
