The Financial Conduct Authority has issued draft guidance for new rules that all financial services firms including financial advisers will be required to adopt in their business practices and culture.
It is called “Consumer Duties”.
Adviser must empathise with clients i.e. put ourselves in the client's shoes/client position. Is the product or service right for the consumer ‘in the consumer’s eyes’?
Good Consumer Outcomes – 4 Key Areas
We believe the above is essential to the financial well being of our clients as well as building up trust between each other.
The new duties will hopefully ensure that consumers are not given products or services that are not in their best interests when they are clearly paying their adviser and placing trust in their adviser to do so.
The onus is on us, as a finance industry to ensure that the “Client Comes First”. We believe that many good financial services firms will already do this as part of their corporate make-up and these new obligations (and indeed liabilities) will weed out the rogues or help make it easier for the FCA to spot the rogues.
We welcome the new consumer duties and will look even harder at where we can improve all our products and services.