The rollout of the consumer duty has taught advisers the importance of storytelling to connect with clients, Julie Greenwood from Octopus Investments has said.
The firm’s key partnerships manager said the new regulations have shone a spotlight on customer service and seeing clients as individuals.
She said: “Storytelling has emerged as a powerful tool for advisers to connect with clients on an emotional level.
“Unlike traditional approaches that position companies as heroes, effective storytelling places clients in the hero’s role.
“This shift in perspective creates a more engaging and relatable narrative and leads customers to take action.”
Greenwood said it was one of three “reasons to be cheerful” in a challenging year, which saw macroeconomic uncertainty, geopolitical tensions and rising interest rates.
She went on to praise the Mansion House reforms, which saw the UK's largest defined contribution pension schemes agree to commit 5 per cent of their default funds to unlisted equities.
The aim of the reforms is to enable the UK’s financial services sector to increase returns for pensioners, improve outcomes for investors and unlock capital for UK growth businesses.
Greenwood said: "This year has laid the groundwork for some promising opportunities. Chancellor Jeremy Hunt's Mansion House reforms, aiming to attract £50bn into high-growth assets by 2030, [is] giving UK plc and our entrepreneurs a boost, and giving our pension pots a potential kicker."
Looking ahead to 2024
Kristy Barr, head of sales and customer at Octopus Investments said 2024 could be a year that sees “green-shoots of global growth”.
However, she warned ongoing geopolitical instability and conflict meant the economic landscape was likely to remain volatile.
She added: “Regardless of the environment, advisers still have a job to do and will need to think about how to position their client portfolios for capital preservation, a recovery of losses and opportunities for growth and/or income within this shaky economic backdrop.
“Additionally, this must be considered within the consumer duty regulatory regime.
"To any seasoned adviser, working within an uncertain geopolitical environment won’t be unchartered territory and some may remember when interest rates were even higher.”
Barr said a key consideration for advisers next year would be the increasing number of people entering higher tax brackets.
She added: “For advisers, incorporating tax and estate planning into their service is likely to become even more crucial in 2024 to demonstrate their value to clients under consumer duty.
“Our focus in 2024 will be on helping advisers understand the opportunities available for their clients."
tara.o'connor@ft.com
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