Vince Smith-Hughes: Marrying Consumer Duty and client income

Consumer Duty rules

clock • 8 min read

Most advice firms will already have robust processes in place to deal with drawdown client risk, writes Vince Smith-Hughes. The next challenge will be how to marry these processes with the FCA's Consumer Duty

With the introduction of pensions freedom it's clear that many people have turned to drawdown as their retirement income vehicle of choice. Since the their first announcement, annuity sales are around a third of where they were previously, while income drawdown sales are around four times greater. Many of these customers will of course be advised. But what about the forthcoming Consumer Duty rules and guidance? How will that affect income drawdown?   All regulated firms will need to consider these new rules in detail. As a brief reminder, we are due to see the final rules by late July...

To continue reading this article...

Join Professional Adviser

  • 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.



Already a Professional Adviser member?


More on Regulation

FCA cancels advice firm's permissions over £11,000 unpaid fees

FCA cancels advice firm's permissions over £11,000 unpaid fees

Failed to do business in a 'sound and prudent' manner

Jenna Brown
clock 21 September 2023 • 1 min read
The Financial Conduct Authority’s SDR regime was introduced in October 2022 and the UK regulator stressed that it was a labelling regime, and not a disclosure regime as its European counterpart was.

EU review of SFDR welcomed despite potential future 'frustration'

Industry-wide review of SFDR undertaken

Eve Maddock-Jones
clock 18 September 2023 • 3 min read
London Capital & Finance creditors could get back just 10%

London Capital & Finance creditors could get back just 10%

Update from administrator Evelyn Partners paints worrying picture

Hope William-Smith
clock 12 September 2023 • 1 min read