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Consumer Duty Rules: A Game-Changer for Mortgage and IFA Clients

In this blog I am going to discuss a groundbreaking shift in financial services: the Financial Conduct Authority’s (FCA) new “Consumer Duty” rules as of the 31st July 2023. So, what are these rules, and how do they benefit you as a mortgage client or someone seeking financial advice?

Blackboard with 'What are the rules' written on it

The “Consumer Duty” is the FCA’s innovative initiative that mandates financial service providers to prioritise their clients’ interests above all else. These regulations raise the bar, demanding higher transparency, robust integrity, and services tailored to your unique needs.

You might ask, “What does this mean for me, specifically?” To illustrate, let’s examine three scenarios.

    • Firstly, consider you’re looking for a mortgage. The Consumer Duty rules require your mortgage broker to explain every term, condition, and implication in simple, plain English. nnNo more bewildering jargon or ambiguous phrases. Your broker must ensure you fully comprehend what you’re signing up for, allowing you to make informed decisions.n
    • Secondly, if you’re seeking investment advice, the rules demand that your Independent Financial Advisor (IFA) puts your needs at the heart of their service. nnYour IFA must take into account your financial standing, long-term goals, risk tolerance, and tailor their advice accordingly. You will receive a financial plan specifically designed for you, not a generic, off-the-shelf solution.n
    • Lastly, let’s imagine you’re planning your retirement. Under the new rules, your financial advisor needs to consider the different stages of your retirement, not just offer a one-size-fits-all income goal. nnThey need to model your cash flowrequirements across these stages, helping you create a comprehensive, dynamic retirement plan that adapts to your evolving needs and minimises the risk of running out of funds when you need them most.

In summary, the FCA’s Consumer Duty rules represent a significant advancement towards a more customer-centric financial industry. As a mortgage or financial advice client, these rules guarantee transparency, superior service quality, and the comforting assurance that your interests are safeguarded.

So, what does this mean for your experience with Compton Financial Services? As a regulated firm, we are committed to not only meeting but exceeding these new FCA standards. We strive to ensure that your understanding, needs, and interests are at the forefront of our service.

Have queries or need more insight? We’re here to help! Follow our social media channels for regular updates, or contact us directly at , to book a free 30 minute meeting, via email at [email protected], or call us on 020 8611 2521.

In your financial journey, you are never alone. We’re here to support and guide you at every turn, ensuring your financial decisions align perfectly with your aspirations.

Our services relate to certain investments whose prices are dependent on fluctua!ons in the financial markets beyond our control. Investments and the income from them may go down as well as up and you may get back less than the amount invested. Past performance cannot be used as a reliable predic!on of future performance.