How will the Consumer Duty impact the wealth management sector?

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Consumer Duty - initial impressions - The Wealth Mosaic feature article - Capital Law

 

Released in October 2023, The Wealth Mosaic’s UK WealthTech Landscape Report is a comprehensive guide to the technology and related vendor marketplace for the UK wealth management community. Our Financial Services Regulation experts’ feature considers the newly implemented Consumer Duty and its likely impact on the wealth management sector.

Having come into force on 31st July 2023 for all open products and services in the UK, many firms have already implemented their Consumer Duty plans. The feature article focuses on an overview of the key things you need to know about Consumer Duty, including:

  • the cross-cutting rules of Consumer Duty
  • the four outcomes of Consumer Duty
  • how to tell if Consumer Duty applies to your firm.

So, how does Consumer Duty affect the wealth management sector?

Several factors have contributed to the shift away from a more traditional approach to wealth management, to a more consumer-focussed model. This new model places an oversight on the wealth sector that will be new for some firms, particularly when compared with well-established consumer-driven markets, such as insurance and credit. The feature article focuses on considering how the Consumer Duty affects the wealth management sector, including client categorisation requirements and changes to the compensation rules. We also consider the implication so far and what the FCA’s approach is likely to be.

Read our full article on the implications of the Consumer Duty on the wealth management sector or view the full UK WealthTech Landscape Report by The Wealth Mosaic.

How can we help?

Our Financial Services Regulation team here at Capital advise on various aspects of wealth management regulation and can assist you and your business in navigating this complex area. If you are a business looking for an efficient way to access the commercial legal advice you need, quickly and without fuss, we can help. Get in touch with our Financial Services Regulation experts.