How the consumer duty will affect product design

Getting ready for the changes

In summary, the focus for advisers is to ensure their own house is in order and review their business operating model, terms and communications – as well as investment proposition to see how they stack up against the new requirements.

For advisers aiming to meet or exceed regulatory expectations by July 2023, having a robust centralised investment and retirement proposition, product governance policy and, in the future, a consumer duty statement of principles would be seen as best practice, in our view. 

Advisers who need to revisit their investment proposition and operating model should now do so.

Henry Cobbe is head of research at Elston Consulting