More than one in three (37 per cent) of advisory firms have changed their fee structure as a result of completing the new Consumer Duty ‘fair value’ exercise.
Research by Royal London with research group Lang Cat found that one in five of these firms (21 per cent) found the changes needed were difficult, with a lot of work was needed to comply, while a small number (3 per cent) still to make the required changes.
However the research showed the Consumer Duty overall to be a positive change with over two thirds (67 per cent) of the respondents agreeing the work needed to carry out the fair value assessments has been worthwhile.
The research has also highlighted that only 20 per cent of adviser firms have issued updates to their clients about these rules changes.
Royal London director of policy Jamie Jenkins says: “The Consumer Duty has prompted a great deal of activity from all areas of the financial services industry and, while this may have initially seemed onerous, it’s clear that it is making a difference to how firms operate in the interests of clients and customers.”