Official warning given to estate agency mortgage advisers

The Financial Conduct Authority could be causing a headache for some estate agency firms offering financial advice after it revealed that many financial firms were still wide of the mark for implementing its incoming Consumer Duty plans at the end of July.

The City regulator wants all financial firms to “shift focus on consumer outcomes” but says some may “be behind in their thinking and planning”.

We recognise that some firms need to make significant changes.”

In its multi-firm review, published yesterday, Sheldon Mills, FCA executive director of consumers and competition, said Consumer Duty would bring about a step change in the way financial services firms treat their customers.

“Given the scale of the reform, we recognise that some firms need to make significant changes.

“For firms which are further behind in making the necessary changes, there is time to put that right and for them to show they are acting in the spirit of the new Duty. “

SERIOUS

Roddy Munro, Head of Proposition Specialists at wealth manager Quilter, says: “Today’s multi-firm review from the FCA highlights just how seriously the regulator is taking the new Consumer Duty.

“Given the professionalisation of the advice industry in the last decade and an increasing focus on value, many will be in a good starting position. It is this value that is so important, and it should not be confused for price.

Clients and their families will value different elements of advice at different points over their lifetimes.”

“Clients and their families will value different elements of advice at different points over their lifetimes. As such we cannot look at price in isolation, but as part of the wider picture when evidencing value to clients.

“This Duty, therefore, presses home the point of having quality data collection for each product and service and ensuring the correct metrics are in place in order to remain compliant. We cannot rest on our laurels that we do much of this already.”