One in seven (16 per cent) IFAs are unclear what good customer outcomes look like under the Financial Conduct Authority’s consumer duty.
Just over six months on from the introduction of the consumer duty, research by Opinium revealed that almost half (45 per cent) of IFAs feel the new rules have made it harder to give clients advice.
Meanwhile, almost three quarters (72 per cent) have seen an increase in admin and reporting duties, and 61 per cent now have less time to advise clients.
Alexa Nightingale, head of financial services research at Opinium, said: “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.”
However, the research, which surveyed 200 financial advisers in January, found that despite these hurdles, two thirds (65 per cent) of IFAs said their businesses have successfully integrated the consumer duty principles.
But 60 per cent acknowledged facing difficulties in meeting the FCA's reporting requirements.
Nightingale said: “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.”
Opinium also conducted an online survey of 2,000 adults aged 18 plus between January 30 and February 2.
It found that despite aiming to improve clarity for consumers, a third (30 per cent) of consumers who had heard of consumer duty believed they had been provided with financial advice that was less clear in the past six months.
Meanwhile, 28 per cent said they had received an all-around less positive service from their financial service providers.
Awareness of consumer duty itself outside of the industry remained low, with the majority (71 per cent) of all UK consumers claiming they had never heard of it.
sonia.rach@ft.com
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