Advisers are too quick to assume a lack of complaints means clients are satisfied with their service claims financial compliance specialists, B-Compliant.
The Manchester-based consultancy is urging financial advisory firms to start garnering feedback from clients to meet their Consumer Duty requirements.
B-Compliant director, Vicky Pearce, said: “At the core of the Consumer Duty regulations is the need for firms to put customers at the heart of their business. The best way to do this is to find out what clients really think of the advice they receive. Just because someone doesn’t complain doesn’t mean they are happy. They could still consider a service mediocre or overpriced, but apathy or a lack of knowledge may prevent them from taking action.”
Consumer Duty requires advisory firms to ‘act to deliver good outcomes for customers’ by conducting regular reviews of the products and services they offer and take action to prevent harm if a product or service doesn’t or ceases to provide fair value. They must also review, test and adapt their communications to ensure key information is accessible and monitor the quality of support offered and address any areas that are falling short.
Vicky added: “Consumer Duty is placing a significant additional administrative burden on small and medium-sized businesses, who don’t currently have the capacity to regularly request and analyse client feedback. However, this is no longer optional. There are software tools being developed to make it easier for firms to meet their regulatory requirements and we are doing all we can to help them set up appropriate systems and processes. Ultimately, we believe advisers who embrace the process of better understanding the customer experience will improve their service and generate new business.”