How will the Consumer Duty affect you?
How will the new Consumer Duty affect you?
Tuesday 30 May, 2023
The Financial Conduct Authority (FCA) will introduce the Consumer Duty from 31st July 2023. It sets higher expectations on how we support our retail customers. According to the FCA: ‘our new duty sets higher and clearer standards of protection across financial services and requires firms to put their customers’ needs first.’
Why has the Consumer Duty been introduced?
The FCA has introduced an outcomes-based Consumer Duty to promote a higher standard of service and care for customers, improve culture and extend product governance and fair value rules.
Simon Hawker, Managing Director of Lonsdale Services St Albans said:
‘In line with the Consumer Duty our objective has always been to put our clients’ needs first and offer independent financial advice on an ongoing basis, so clients achieve their long-term financial goals and objectives through customised investment plans appropriate for their personal circumstances and appetite for risk. We also provide the highest standard of client service, through our core values of integrity, reliability and always offering fair value to clients. As our financial planning teams have always prioritised fair value for clients, Lonsdale Services is well placed to adapt to the new Consumer Duty principles. All Lonsdale Services colleagues have completed Consumer Duty training, so they know what changes are required when offering you financial advice. We have also set up a working party to review our products and services and the fees we charge to ensure we continue to offer clients fair value. Members of our team who don’t work in financial planning have reviewed our client communication. Our suitability reports have been simplified and other client reports have been amended. When clients come to our offices they will see our Consumer Duty posters, based on the model below, which emphasise the work we continue to do to comply with the new regulations.’
Customer Principles
Simon Hawker, Managing Director of Lonsdale Services St Albans continued:
‘At each annual review our detailed fact finding will enable our consultants to ensure we continue to offer clients good customer outcomes based on their financial risk and goals. We have built longstanding relationships with most clients so our consultants will know if their circumstances or risk profile change and will amend their advice accordingly. Our consultants will discuss the Consumer Duty at client review meetings. We will be asking questions throughout the meeting to ensure clients understand our financial planning advice. We are really pleased that so many clients continue to provide feedback, either through our questionnaire or google reviews, but we will also be asking for more informal feedback during our review meetings so we can confirm clients are happy and understand the advice we provide.’
Working with clients living in vulnerable circumstances
The Consumer Duty also focuses on financial advice and customer support for clients living in vulnerable circumstances. In 2021 Lonsdale Services won the Best Adviser firm for Vulnerable Client Care at the National Professional Adviser Awards. We continue to prioritise clients living in vulnerable circumstances, as our Vulnerable Client Group meets every six months to discuss how we provide guidance on new regulations.
For more information read:
Simon Hawker, IFA - Lonsdale Services voted in the Top 100 UK Financial Advisers
Neil Homer, Stafford - When should you pay for financial advice?
Lonsdale Services win 2021 Professor Adviser Award for vulnerable client care
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