When asked how much, advisers said they expect complying with Consumer Duty will cost their business around £18,161.
Nearly a quarter (24%) of advisers expect their turnover to decrease, with two-thirds (63%) saying it will stay the same. Just 8% expect turnover to increase.
For advisers in a network, they expect complying with Consumer Duty will cost their business £15,076, while those who are directly authorised expect costs of £19,934.
Sole traders expect to see a cost of just £4,925 to comply, compared to £93,325 for those with 21 advisers or more. For a mid-sized firm with between six and ten advisers, costs were expected to reach £20,208.
Furthermore, almost a third (32%) of financial advisers expect their customer fees to increase as a result of the regulations.
Advice recruitment director John Kerr said: “The Consumer Duty is a landmark piece of regulation and has the potential to alter the customer experience for the better from day one. With the rules coming into force today, it is important that financial advisers have their systems and processes in place and that these have been communicated across the firm.