Consumer Duty leading to advice firms reviewing client banks

Advice firms are ‘offboarding’ clients that they cannot service profitably

Isabel Baxter
clock • 1 min read

Following the implementation of Consumer Duty, many advice firms are reviewing their client bank, NextWealth has found.

Its recent Multi-Asset Distribution Dynamics report found that since Consumer Duty was implemented last July, advice firms are ‘offboarding' clients that they cannot service profitably or whose planning needs do not justify the cost of advice. A head of strategy for a large adviser network told NextWealth that a multi-asset fund can be a good solution for these clients. "Some smaller clients, we'll say stick them in a multi-asset fund and turn your advice fees off," they said  This came as the report found the most common way advisers use multi-asset funds is for clients with small...

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Isabel Baxter
Author spotlight

Isabel Baxter

Senior Reporter at Professional Adviser

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