Advisers fear profit dip from £20,000 Consumer Duty compliance costs

Financial advisers expect rise in costs and a decline in profitability

Sahar Nazir
clock • 2 min read

Nearly half (44%) of financial advisers expect their profitability to drop due to compliance with the Consumer Duty rules.

As the new regulation takes effect today (31 July), research from Quilter and Boring Money has found that advisers are spending nearly £20,000 on ensuring that their business complies. When asked how much, advisers said they expect complying with Consumer Duty will cost their business around £18,161. Meanwhile, just 5% of advisers believe their profitability will increase, and just under half (46%) said that they expect it to stay the same. Nearly a quarter (24%) of advisers expect their turnover to decrease, with two-thirds (63%) saying it will stay the same. Just 8% expect turnov...

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