New research by Copia Capital reveals that one in six advice firms expects the upcoming Consumer Duty value for money rules to lead to an overall increase in the fees that their clients pay. The survey found that 38% of respondents believed the rules would have no impact, while 22% expected them to result in a decrease in fees.
The forthcoming Consumer Duty regulations aim to ensure that financial advisors act in the best interests of their clients and provide clear and transparent information on their charges and services. While many advisors welcome the new rules as a necessary step towards greater trust and transparency in the industry, others are concerned about the potential impact on fees and profitability.
Some advisors fear that the increased focus on value for money and the need to provide clear and transparent information on charges and services will result in higher fees, as firms seek to cover the costs of compliance and maintain profitability.
However, others argue that the new rules will actually benefit advisors by promoting greater trust and transparency, and helping to establish a level playing field in the industry. By providing clear and detailed information on fees and services, advisors can demonstrate their value to clients and differentiate themselves from less transparent and less ethical competitors.
Overall, the impact of the new Consumer Duty rules on fees and profitability remains uncertain. While some advisors anticipate an increase in fees