One in 12 financial advisers and wealth managers believe their company will not meet the FCA Consumer Duty Compliance deadline on 31 July, research from Ortec Finance finds.
Financial professionals mostly voiced concern around the ‘inability to provide sufficient evidence of board engagement’ and ‘incomplete reviews of their approach to vulnerable customers’. Other compliance issues could include inadequate internal reviews, issues with staff training and a lack of evidence for investigating potential consumer harm.
See also: Advisers ‘on dangerous ground’ with tick-box approach to Consumer Duty
Tessa Kuijl, managing director of global wealth solutions at Ortec Finance, said: “The FCA’s Consumer Duty Board report deadline is fast approaching, and our research highlights that some wealth management and financial advisor firms still have work to do to meet the deadline. It’s concerning that so many wealth managers and financial advisors doubt their ability to meet the deadline.”
As companies struggle to meet compliance standards, 78% of advisers and wealth managers believe that fines will increase in the next three years for non-compliance. Near three quarters also believe there will be an increase in tech investment to help meet the standards.
“As wealth managers and advisors foresee a rise in fines due to heightened compliance, many are turning to technology to better navigate these regulatory requirements. Investing in the right tools and systems is crucial for protecting both the firms and their clients,” Kuijl said.
This story was written by our sister title Portfolio Adviser
