Regulatory bodies play a crucial role in this process.
Enhanced oversight and stricter enforcement can help ensure providers adhere to their obligations.
Additionally, clients should be empowered with better information and tools to make informed decisions about their financial providers, including clear disclosures about fees, investment strategies and performance metrics.
A call to action
The financial services profession must address these deficiencies to restore and maintain client trust.
As professionals, we have a responsibility to advocate for practices that prioritise client welfare above all else. This means challenging third-party providers that fail to cooperate with portfolio transfers, expose clients to inappropriate risks or charge excessive fees.
By championing a more client-centric approach, we can foster a financial services landscape that truly embodies the principles of Consumer Duty.
This will enhance clients' financial wellbeing and strengthen the profession's integrity and reputation.
The current practices of many third-party financial service providers are at odds with Consumer Duty principles. It is imperative that these providers are held accountable and that the profession moves towards a more transparent, efficient, and client-focused model.
Only then can we ensure that clients receive the fair, honest and value-driven service they deserve.
Jonathan Gibson is chartered FCSI and managing director of Wells Gibson
