“Each client is different and addressing the pros and cons of an annuity at regular reviews is very important, because the switch from flexible to regular guaranteed income can happen at any point.”
The consumer duty is causing firms to reassess how they interact with clients.
John Graves, head of product technical and oversight at Legal & General, says providers and advisers need to be sure that they are considering what customers need to be able to make the right decisions and to feel comfortable that they are getting the best outcomes. An adviser has an intrinsic role in making sure this is achieved.
Graves adds: "Ultimately, an adviser needs to be sure that a client understands the product or solution that is presented to them, at least to a level to be able to make an informed decision. This may mean that an adviser’s approach and delivery method needs to adapt to each client, and be flexible enough to accommodate many different requirements.
“The way they communicate with their clients needs to be adaptable to each individual. If the type of communication needs to change, for example braille, audio recording or large print, they should be able to get that from the firm they are dealing with or, where produced in-house, the necessary adaptations will need to be made."
Chloe Cheung is a senior features writer at FTAdviser
