Hall said the regulator aims to stimulate innovation and competition and this objective aligns with the FCA’s ambition of enabling more UK consumers to access financial advice.
With the consumer duty deadline now imminent, it is expected that all financial advice firms will either be fully prepared or in the final stages of complying with the new rules.
However, Hall said it is crucial for firms to look beyond the July 31 deadline and consider not only how they ensure compliance with the consumer duty but also how it positions them in the market.
Wealth Wizards identified three clear business benefits of the consumer duty. These are:
It said forward-thinking firms, including major players, networks, and consolidators, who are focused on scaling up, will be seeking ways to capitalise on these advantages.
There are three key elements for growing advice businesses to both meet the consumer duty requirements and build for the future.
They are:
The firm said digital solutions can facilitate each of these elements as they enable engagement with clients, such as gathering relevant information through fact-finding, identifying their needs and goals, and providing advice and recommendations through suitability reports.
Hall said technology can automate the heavy lifting of the advice process, such as digitising fact-finding, populating data entry fields, generating suitability reports, validating data, and providing automated fund recommendations where appropriate.
This frees up advisers, paraplanners, and administrators to focus on the aspects of the advice process that adds value for the client – how their relationship with the advice firm helps them meet their financial needs and achieve their goals.
sonia.rach@ft.com