The FCA’s Consumer Duty, introduced in July 2023, sets higher standards for client-centred financial advice, emphasising accountability and transparency. So what should professional advisor clients be experiencing as a result of this?
In July 2023, the Financial Conduct Authority (FCA) introduced Consumer Duty, setting higher standards for how firms treat clients by focusing on good outcomes and client-centred decisions.
At Auderli, we’ve always believed in businesses putting clients at the centre, and this aligns perfectly with these regulations.
Consumer Duty is more than a rule change—it’s a shift towards greater accountability, transparency, and client-focused results. While not all advisors fully comply yet, most are working to meet these new standards as the industry transitions with the first Consumer Duty annual report having been submitted by firms at the end of July this year.
At its core, the Consumer Duty is about raising the bar across all touchpoints of financial advice, ensuring that clients’ needs and well-being are always front and centre.
Consumer Duty encourages advisors to look beyond standard compliance and really get to the heart of what matters to clients. Every recommendation, every service, and every product suggested should undergo even deeper scrutiny to ensure it meets your specific financial goals and personal circumstances.
Transparency is at the core of client relationships, and under the Consumer Duty, there is a commitment to take this to the next level. Whether it’s explaining product features, discussing risks, or outlining fees, you should have the clearest, most accessible information possible. You should be armed to make informed decisions with complete confidence, knowing that every recommendation is in your best interest.
Financial advice isn’t one-size-fits-all, and this is especially true when it comes to vulnerable clients. Whether you’re navigating complex life changes, health challenges, or just need extra guidance, Consumer Duty strengthens the commitment to provide tailored support that goes beyond the usual.
In the fast-paced world of finance, your needs and the markets are constantly changing. Under Consumer Duty, there should be a stronger focus on ongoing support and regular check-ins to ensure that your financial plan remains aligned with your goals. This is about more than just reviewing investments—it’s about staying in touch with you, understanding how your personal and financial situation evolves, and making adjustments to ensure your financial plan continues to deliver.
Perhaps the most profound change Consumer Duty introduces is a cultural one. It reinforces the need for all firms to adopt a client-centric mindset, ensuring that consumer interests shape the future of financial services. At Auderli, this has always been part of our DNA. We’ve built our product around a deep commitment to enabling clients to get the most relevant advice they can.
We are excited about this shift and the opportunities it brings. Consumer Duty provides a framework that will ensure the financial industry puts clients first—something we’ve always championed at Auderli.
Here’s to a brighter, more secure financial future for all.
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