Equity release lender, more2life, is calling on advisers to respond to the Financial Conduct Authority’s (FCA) recent call for a new Consumer Duty by the end of July in order to ensure the needs of later life customers are accurately captured.
The regulator’s new proposal to introduce a Consumer Duty will aim to establish a higher level of consumer protection in retail financial markets, with the FCA extending its existing rules and principles to ensure advice firms produce consistently positive outcomes for clients.
More2life says that with the FCA’s 2020 Financial Lives Survey, suggesting that Covid-19 has increased the number of adults displaying characteristics of vulnerability in the UK to 27.7 million, this is likely to be more important than ever – especially amongst the harder hit demographics such as the over-55s. more2life’s 2020 Vulnerability Report supported this view with 39% of advisers saying they had seen more vulnerable customers over the last 12 months (up from 30% in 2019).
As the consultation covers the entire retail financial market, more2life says it is vitally important that advisers who speak to later life lending clients on a daily basis feed into the discussions to ensure the plans for enhance consumer protections work well for their customers. more2life is therefore urging advisers to respond to the FCA’s consultation before it closes on Saturday 31st July.
Stuart Wilson, corporate marketing director at more2life, said: “As an industry, we need to engage with the FCA as they look to establish a higher level of consumer protection in retail financial markets. They are the regulator but they don’t speak to ordinary customers on a daily basis as most later life advisers do so it is vital that you feed into the consultation so they are able fully understand the diverse needs and wants of over-55s.
“The impact of Covid-19 has been felt physically, mentally and financially by most people in the UK – making some more vulnerable than they may otherwise have been. This consultation which focuses on ensuring firms produce consistently positive outcomes for clients will help us to support them better.
“Taking the time now to ensure that your voice is heard and your clients’ needs are captured will pay off in the long run – helping to make the industry more robust customer-centric than ever.”
More2life says advisers can get involved as follows:
- Advisers can share their thoughts on the FCA’s consultation via the online response form (https://www.fca.org.uk/cp21-13-response-form).
- Alternatively, advisers can email their thoughts to cp21-13@fca.org.uk or write a letter addressed to Consumer and Retail Policy, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN.
- The FCA’s plans to implement a new Consumer Duty can be read in full here: https://www.fca.org.uk/publications/consultation-papers/cp21-13-new-consumer-duty.
