How Will ‘The New Consumer Duty’ Impact Your Financial Advice?
The recently introduced New Consumer Duty in the UK is set to bring about significant changes for clients and their financial advisers. But what will it mean for you?
This Financial Conduct Authority (FCA) initiative aims to enhance the overall experience for clients by focusing on three key aspects: understanding financial needs and options, ensuring transparent and fair pricing, and improving customer service.
The impact will take effect in three ways.
- A holistic approach to advice
- Transparency on fees
- Focus on consumer service
Firstly, the Consumer Duty will compel financial advisers to adopt a more comprehensive approach to understanding their clients’ financial requirements and aspirations. This means going beyond the surface and taking into account not just their current financial situation but also their long-term goals. By doing so, advisers will be better equipped to recommend tailored products and services that align with the clients’ specific needs.
Secondly, the Consumer Duty will put a spotlight on transparency regarding fees and charges. Financial advisers will be required to disclose all costs upfront in a clear and easily understandable manner. This newfound transparency will empower clients to make informed comparisons between different offerings, ensuring they receive fair treatment and value for their money.
Lastly, the new Consumer Duty will heighten the focus on customer service. Financial advisers will be obligated to provide timely and accurate information to their clients. This means promptly addressing client queries and furnishing reliable details about the products and services they provide. By doing so, advisers will empower clients to make well-informed decisions about their financial affairs.
What Does ‘The New Consumer Duty’ Mean for Questa Clients?
Here at Questa, we welcome the introduction of the new Consumer Duty. In fact, we have been implementing the recommendations laid out in the new guidelines for many years. Above all, it is great news for our industry and the clients who rely on financial advice to create a prosperous future for themselves and their families.
In practical terms, clients will experience financial advisers taking more time to listen and understand their unique financial circumstances. The days of hidden fees and confusing pricing structures will be replaced with clear and upfront information, enabling clients to make more confident choices.
Moreover, clients can anticipate improved responsiveness from advisers when they reach out for advice or support. Any issues or problems that arise will be handled with greater diligence, ensuring clients’ concerns are addressed and resolved in a satisfactory manner.
The new Consumer Duty is poised to usher in positive changes for clients of financial advisers. By encouraging a more holistic approach, transparent pricing, and better customer service, clients can expect to be better informed, receive fairer treatment, and enjoy an overall improved experience when seeking financial advice.
As this initiative takes effect, it holds the potential to foster a more trustworthy and client-centric financial advice landscape in the UK.