"The overwhelming majority of advice professionals state that poor service is having a significant impact on their day-to-day life."
- Steven Nelson, insight director at the lang cat
A new study highlights adviser frustration with the progress made by the sector towards the Products and Services outcome as part of the Consumer Duty.
When the lang cat asked advisers to rate progress, over a third (34%) of firms indicated efforts had been ‘a waste of time’ and ‘nothing has changed’, while more than half (55%) stated there’s more work to be done. Many respondents talked about the need for real support from providers on pressing issues like transfers and Letters of Authority that would drive positive change for them and their clients but also the wider industry.
At the same time, the data shows that the Consumer Duty is having a tangible impact on firms. As well as looking closely at their client base, at segmentation and their profitability, over a third of advice respondents (38%) have changed their fee models, with a further 21% saying it’s under consideration.
The full report will be published in February 2025.
Steven Nelson, insight director at the lang cat, commented: “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.”
