"The legislation will deliver a ‘fundamental shift’ in the approach to regulation"
Of those, half (53%) believe they will only need to make small changes to their business to comply.
The new rules and guidance are due to be published by 31 July 2022, with all firms needing to be fully compliant by April 2023.
The legislation will deliver a ‘fundamental shift’ in the approach to regulation by raising the bar on delivering good outcomes for customers.
Royal London's research showed that a quarter of advisers (27%) aren’t considering making any changes - and just 2% anticipate making significant levels of change.
However, one in five advisers (19%) say they haven’t heard of the new Consumer Duty and therefore won’t have considered the level of change they may or may not need to make.
Advisers said that ‘processes that help to shape client recommendations’ (33%) was the business area they were most likely to review or change in light of the Consumer Duty legislation. That was followed by ‘adviser to client communications’ (31%) and ‘adviser to client service’ (29%).
Jamie Jenkins, director of policy at Royal London, said:
“Advisers are undoubtedly well placed to understand customer outcomes, and it’s reassuring to see that most advisers expect their business to comply with the Duty on time.
“What is of concern is the number of advisers who are either unaware of the new rules coming into force, have yet to read the consultation paper or don’t believe it will add any value to consumer outcomes.
“It’s encouraging to see that many advice firms will turn to their network or provider for help, collaborating to deliver good outcomes for their clients.”