Over a third of advice firms believe there’s been no progress towards the Consumer Duty’s products and services outcome, according to early analysis of the lang cat’s State of the Advice Nation (SOTAN) study.
When asked to rate progress, over a third (34%) of firms indicated efforts had been ‘a waste of time’ and ‘nothing has changed’, while more than half (55%) stated there’s more work to be done.
Many respondents talked about the need for real support from providers on pressing issues like transfers and Letters of Authority that would drive positive change for them and their clients but also the wider industry.
At the same time, the data shows that the Consumer Duty is having a tangible impact on firms. As well as looking closely at their client base, at segmentation and their profitability, over a third of advice respondents (38%) have changed their fee models, with a further 21% saying it’s under consideration.
The full report will be published in February 2025. These early findings coincide with a 25% jump in response rates for SOTAN compared to last year with 501 respondents. At the same time, membership of the lang cat’s insight panel, which represents a cross-section of the advice profession, has also grown by 15%, to over 1600 members.
There has been an increase in the representation of paraplanners and newcomers to careers in financial advice. Each account for more than 10% of submissions, enabling the lang cat to capture voices from right across the profession.
SOTAN is a UK study of the advice profession, covering a wide range of topics including technology, regulation, fees and how individuals feel about their own businesses and careers.
Steven Nelson, insight director at the lang cat said: “I’m absolutely delighted to say that we now have the privilege of analysing and publishing the richest data set we’ve ever had for any of the seven SOTAN editions. It’s also really encouraging to see an increase in the number of paraplanners and those new to the advice profession taking part and having their voices heard.
“The early analysis has again highlighted the impact of Consumer Duty and the view on providers has clear read across to our recent service impact study. Here the overwhelming majority of advice professionals state that poor service is having a significant impact on their day-to-day life.”
The SOTAN survey takes a role-specific view of the profession, capturing insight from a range of perspectives including business owners, paraplanners and those newer to the profession. In return, the final report offers valuable data, actionable insights, and detailed reports that inform and support professionals throughout the industry.
