One in seven or 16 per cent remain unclear on what constitutes good customer outcomes, six months after the implementation of Consumer Duty, according to Opinium.
Furthermore, 45 per cent of IFAs assert that advising clients will be more challenging under the new regulations due to limited client advice time, cited by 61 per cent, and greater administrative obligations, reported by 72 per cent.
A third of customers, 30 per cent, who are aware of Consumer Duty feel they have received less clear financial advice, while 28 per cent report a reduction in overall service quality from their financial providers, despite the goal being to improve clarity for consumers.
Meanwhile, around 71 per cent of UK customers say they had never heard of Consumer Duty, demonstrating the low level of awareness among this group.
Despite these obstacles, 65 per cent of IFAs think their companies have successfully incorporated Consumer Duty; however, 60 per cent admit that they have trouble fulfilling the FCA reporting requirements.
Opinium head of financial services research Alexa Nightingale says: “Six months on from Consumer Duty being brought in, the IFA polling shows there is some work to be done in terms of how supported firms feel in implementing the new rules. As with any major change in regulation, it’s not surprising there are initial teething problems, and these currently seem to be extending to the consumer experience – which Consumer Duty was brought in to improve.
“It appears there is more that could be done by the regulator to help support firms. However, if IFAs and their businesses are able to share their learnings and knowledge externally, the lack of certainty also presents an opportunity for sharing that could benefit the whole industry.”
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