The FCA’s Consumer Duty comes into effect at the end of July, and advisers will be considering what adjustments they need to make to their businesses to drive good outcomes for consumers. 

While many will use this as an opportunity to re-examine the design and nature of the services they offer, some other advisers believe that the Consumer Duty is mainly a reinforcement of current best practice. Either way, advisers will need evidence to be able to demonstrate that they are delivering against the new rules.

Research from Aegon* shows the extent to which advisers expect the Consumer Duty to impact retirement advice. The three areas advisers expect to change most are:

  • the way they communicate with clients (34%)
  • the way they assess the value of advice (33%)
  • the way they segment their client base and service offerings (28%)

Aegon and NextWealth, Managing Lifetime Wealth, Q. How likely is it that the Consumer Duty will change your retirement advice offering in the following areas?


The most common way that advisers see the Consumer Duty changing their offering is how they communicate with clients, a key focal point for advisers given the Consumer Understanding outcome demands consumers receive communications they can understand.

The research also found advised clients already place a high importance on communication: 93% agree that fully understanding retirement advice is important. Encouragingly, 4 in 5 (81%) advised clients say they have at least a general understanding of how on track they are with their financial objectives, suggesting that advisers are largely delivering what clients want and expect, though with some room for improvement.

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