Consumer Duty – The pressure on adviser mental health

Consumer Duty is fast approaching its first anniversary, playing a critical role in ensuring the delivery of good consumer outcomes. The regulatory focus has rightly been on the customer, as firms should recognise gaps in their activities that could potentially cause harm or deter customers from achieving their financial objectives.  

However, is the adviser responsible for serving the firm’s customers being overlooked?

A recent study from Core Data Research on the UK Financial Advice Industry has highlighted the psychological impact of regulatory pressure on financial advisers since the introduction of Consumer Duty.  Many participants in the survey reported heightened stress and anxiety due to the fear of non-compliance and potential FCA visits as a result.  

Some have stated that Consumer Duty is a burden, primarily due to the ‘prove-it’ aspect. Although the majority of firms and advisers are taking reasonable steps to deliver fair value and good outcomes, meeting evidential requirements now demands further investment in technology and people to help mould the mindset.

Furthermore, there is a growing consensus that both stakeholders and regulators themselves must play a proactive role in alleviating pressure on advisers. This involves potentially streamlining compliance processes, reducing unnecessary administrative overhead, and providing clearer guidance to facilitate compliance with Consumer Duty requirements.

Essentially, with a more encouraging environment, stakeholders and regulators can mitigate the negative effects of Consumer Duty pressure – promoting a more sustainable advisory profession.

HOW CAN WE HELP?

Delivering Consumer Duty standards within a firm requires its advisers to document their client interactions effectively, demonstrating recognition of vulnerable customers, representation of fair value, and delivering good consumer outcomes.

The evidentiary aspect of FCA requirements is highlighted as a primary cause of stress on adviser’s mental health, emphasising the need for a convenient, effective, and reliable solution.  This involves streamlining processes, clear documentation, structured workflows, and many more easily accessible features to give advisers that competitive ‘edge’ to be ahead of the Consumer Duty curve. It wouldn’t be just the advisers who benefit from this solution, as it would allow both Administration and Compliance/Regulatory teams to monitor activity and display FCA standards are being upheld – and being upheld effectively.

THE SOLUTION

ArchAngel Software is a cutting-edge solution designed to streamline health and protection insurance policy management for firms. It’s designed and used by private medical insurance intermediaries to automate core business tasks to efficiently manage clients and individuals with ease.

This innovative software centralises policies and records in one simple database, with access to stored insurance documents while being fully GDPR compliant.

Clunky systems are outdated and inconvenient – firms need reliable access to their customer data.

A suite of integrated reports will assist Firms and their Advisers with analysing financial information, performance and growth opportunities.