Consumer Duty leading to advice firms reviewing client banks

Advice firms are ‘offboarding’ clients that they cannot service profitably

Isabel Baxter
clock • 1 min read

Following the implementation of Consumer Duty, many advice firms are reviewing their client bank, NextWealth has found.

Its recent Multi-Asset Distribution Dynamics report found that since Consumer Duty was implemented last July, advice firms are ‘offboarding' clients that they cannot service profitably or whose planning needs do not justify the cost of advice. A head of strategy for a large adviser network told NextWealth that a multi-asset fund can be a good solution for these clients. "Some smaller clients, we'll say stick them in a multi-asset fund and turn your advice fees off," they said  This came as the report found the most common way advisers use multi-asset funds is for clients with small...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Consumer Duty

Assessment of value: Unintended Consumer Duty consequences

Assessment of value: Unintended Consumer Duty consequences

All parties now have an obligation to consider the value of their proposition

David Ogden
clock 14 June 2024 • 3 min read
Consumer Duty: How firms should prepare for the 31 July deadline

Consumer Duty: How firms should prepare for the 31 July deadline

'A discussion on what gaps exist would seem sensible'

Catriona McInally
clock 10 June 2024 • 4 min read
FCA should name firms that miss Consumer Duty report deadline

FCA should name firms that miss Consumer Duty report deadline

First Consumer Duty board report deadline is 31 July

Jenna Brown
clock 10 June 2024 • 2 min read