Consumer Duty non-compliance fines high on advisers' radars

Reasons for missing board report include insufficient evidence

Sahar Nazir
clock • 1 min read

Advisers are anticipating a rise in fines over the next three years linked to Consumer Duty non-compliance as some expect to miss the Financial Conduct Authority’s board report deadline, Ortec Finance has found.

Its research found that eight in ten (78%) of those surveyed anticipate higher fines as one in twelve (8%) fear their company will not meet the 31 July 2024 deadline. The primary reasons firms are expected to miss the deadline include: insufficient evidence of board engagement with Consumer Duty; incomplete reviews of their approach to vulnerable customers;  incomplete staff training; and insufficient evidence of identifying potential consumer harm. Ortec Finance said that to address regulatory demands, nearly 74% of advisers foresee increased investment in technology. Managing dir...

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