Brokers "keen to be educated" on the new regulation
While a vast majority - 86%, of brokers - are confident about their awareness of Consumer Duty, six in 10 still want to have more information about the new regulation from financial providers to help them with the imminent changes.
According to new research from Hodge, around three quarters, or 73%, of brokers said they were fully prepared for Consumer Duty.
Emma Graham (pictured), business development director at Hodge. “What is clear is that brokers are keen to be educated on Consumer Duty, with three quarters of those we surveyed going out of their way to learn more, whether that be through webinars or reports, which is great to hear.”
Nearly half, or 49%, said they did not think the duty would change the products and services they offered, while a quarter admitted they believed it would change the way they worked. A small 4% of those surveyed by the specialist lender said they had employed an expert advisor to help with products that were new to them.
Three in four brokers said they had been learning about Consumer Duty through reading reports about the changes, 59% had enrolled on CPD courses, while half had attended or were attending webinars to learn more about the regulation that is coming into force on July 31.
The Consumer Duty is a significant shift in our expectations.
— Financial Conduct Authority (@TheFCA) June 28, 2023
Once it’s in force, we’ll prioritise the most serious breaches and act swiftly and assertively where we find evidence of harm or risk of harm to #consumers. #ConsumerDuty https://t.co/skLynIw2Cq
Graham said: “With the Consumer Duty deadline just a few weeks away, it is good to know that our intermediary colleagues feel prepared for these big changes. Many have said to us anecdotally that Consumer Duty just feels like an extension of TCF, while others are concerned about the extra administrative burden CD puts upon them, especially those in smaller companies or independent IFAs.”
Graham added that it was understandable that many brokers still wanted to learn more from financial providers.
“This is why we, at Hodge, have created a Consumer Duty knowledge hub, which brokers and IFAs can visit and learn more about the rules around Consumer Duty, as well as being able to download information sheets on everything from product intentions to fair value assessments for their clients,” she stated.
“Moreover, as the deadline draws nearer and even as we go past it, we want our intermediary partners to know that we are here to answer any questions or queries around CD. Our underwriting team understands that this is a big change for some and so will be on hand to help with any affordability questions or general concerns as the new regulations come into effect.”
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