Vulnerability management: Consumer Duty all-important as consolidation continues

Will customer vulnerability management take over from AUM in 2025?

clock • 2 min read

Andrew Gething warns that ignoring Consumer Duty and customer vulnerability could deter consolidators and their private equity backers…

Recently, I was talking to a consolidator of financial adviser businesses about customer vulnerability management and the due diligence around Consumer Duty. The Financial Conduct Authority (FCA) is likely to enforce Consumer Duty over 2025; this therefore represents quite a liability for acquirers if the target firm has not implemented Consumer Duty. Assets under management (AUM) effectively represent the amount of income an adviser can make from ongoing fees. It is relatively easy to adjust the percentage income from the assets to assess scenarios of income, taking into account fair...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Meeting the needs of vulnerable consumers in financial services

Meeting the needs of vulnerable consumers in financial services

'The dynamic nature of vulnerability can make determining who's in scope complicated'

Shriya Patel
clock 14 January 2026 • 4 min read
Ten firms achieved CII Chartered status in second half of 2025

Ten firms achieved CII Chartered status in second half of 2025

Across financial planning and insurance

Jenna Brown
clock 13 January 2026 • 1 min read
FSCS sets £108m budget for 2026/27 as costs fall in real terms

FSCS sets £108m budget for 2026/27 as costs fall in real terms

Compensation scheme plans lower core costs

Sahar Nazir
clock 13 January 2026 • 1 min read