More information on Consumer Duty needed, say 60% of brokers

The latest research from specialist lender, Hodge, found that despite 86% of brokers being confident about their awareness of Consumer Duty just weeks ahead of its implementation, 61% want to have more information about CD from financial providers to help them with the imminent changes.

73% said they were fully prepared for Consumer Duty coming into force on July 31st.

49% said they didn’t think CD would change the products and services they offered, while 25% admitted they believe it will change the way they work. Four percent of those surveyed said they had employed an expert advisor to help with products that are new to them.

When it came to how brokers have been educating themselves about Consumer Duty, most (75%) have been learning through reading reports about the changes, 59% have enrolled on CPD courses, and 50% have attended or are attending webinars to learn more about CD.

Emma Graham, business development director for Hodge, said: “With the Consumer Duty deadline just a few weeks away, it is good to know that our intermediary colleagues feel prepared for these big changes. Many have said to us anecdotally that CD just feels like an extension of TCF, while others are concerned about the extra administrative burden CD puts upon them, especially those in smaller companies or independent IFAs.

“What is clear is that brokers are keen to be educated on CD, with three-quarters of those we surveyed going out of their way to learn more, whether that be through webinars or reports, which is great to hear.”

Emma concludes: “We also understand and hear the 61% who said they want to learn more from financial providers, which is why we at Hodge have created a Consumer Duty knowledge hub which brokers and IFAs can visit and learn more about the rules around Consumer Duty, as well as being able to download information sheets on everything from Product Intentions to Fair Value Assessments for their clients.

“Moreover, as the deadline draws nearer and even as we go past it, we want our intermediary partners to know that we are here to answer any questions or queries around CD. Our Underwriting team understands that this is a big change for some and so will be on hand to help with any affordability questions or general concerns as the new regulations come into effect.”