More than 34 per cent of advisers believe efforts to meet the Consumer Duty’s products and services outcome have achieved nothing labelling it ‘a waste of time’ and saying ‘nothing has changed’, while 55 per cent feel significant work remains.
According to an early analysis of the State of the Advice Nation (SOTAN) study by lang cat, advisers are frustrated with the sector’s progress towards the products and services outcome, which is a component of the Consumer Duty.
Many cite a lack of provider support for key issues like transfers and Letters of Authority as barriers to meaningful progress.
Additionally, Consumer Duty is causing operational changes: 38 per cent of businesses have updated their charge structures, and 21 per cent are considering doing so. According to the lang cat, the increasing regulatory focus has prompted several organisations to analyse client profitability and segmentation in greater detail.
More paraplanners and early-career professionals, who now account for over 10 per cent of submissions, participated in the survey, which showed a 25 per cent rise in answers compared to the previous year, with 501 participants.
the lang cat insight director Steven Nelson says: “I’m absolutely delighted to say that we now have the privilege of analysing and publishing the richest data set we’ve ever had for any of the seven SOTAN editions. It’s also really encouraging to see an increase in the number of paraplanners and those new to the advice profession taking part and having their voices heard.
“The early analysis has again highlighted the impact of Consumer Duty and the view on providers has clear read across to our recent service impact study. Here the overwhelming majority of advice professionals state that poor service is having a significant impact on their day-to-day life.”