Nearly a fifth (17%) of advisers say they are unprepared for the upcoming Consumer Duty regulatory changes, while a further 8% are unsure about how prepared they were or not, the latest research from Air reveals. 

Meanwhile, 5% of advisers don’t know what changes are being made to the Consumer Duty and only 19% of advisers said they felt very prepared for the changes.

The research found that 86% of advisers anticipate that they will need to make changes to their operations due to Consumer Duty. 

When asked advisers expect the Consumer Duty to impact their operations and processes, 47% believe they will need to change the way they document the advice they provide. 

The same proportion also said they would need to review the customer journey and make changes as appropriate, while 29% said they will better need to assess and document the fair value justification of their remuneration. 

More than a quarter (26%) said they would need to redefine the metrics they use to measure whether a good customer outcome has been achieved. 

Organisations were expected to have a board or senior manager approved Consumer Duty implementation plan in place for 31 October 2022 for delivery by 31 July 2023 for new and existing products and services that can be sold or renewed.

Air Club chairman Stuart Wilson says: “The FCA’s Consumer Duty is the largest shake up in regulation for years with far reaching effects across all financial services firms.”

“And it’s clear to see from our research today that these reforms will have a profound impact on advisers in the later life lending market, with 86% believing they will need to change how they operate but far fewer being prepared for this shift.”

“While there is no doubt many advisers already have some of the mechanisms and systems in place to prosper in this new world, they should not be complacent.  Now is the time to review, road test your approach and ensure that you understand the most current industry thinking on this fundamental change.!