Consumer Duty threatens to widen advice gap by 1.5 million

Advisers could already have cut 600,000 clients loose, findings suggest

Jen Frost
clock • 2 min read

Consumer Duty could already have driven advisers to cut off 600,000 clients with hundreds of thousands more set to be shed, The Lang Cat research has found.

In total, the impact of the Consumer Duty regulation could see about 1.5 million clients become non-advised, significantly adding to the advice gap. This is according to The Lang Cat's ‘The Advice Gap 2024' report, released yesterday (3 July). This would be a "significant" addition to the advice gap, The Lang Cat said. Currently, 9% of the population receive advice meaning 91% of people do not. The Lang Cat's findings were based on responses from 219 financial advisers. Source: The Lang Cat At the extreme end, a small proportion of advice firms reported having already cut mor...

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