The morning briefing: How Consumer Duty will shape protection advice

Hello and welcome to your Morning Briefing on Wednesday, June 29, 2022. To receive it each morning in your inbox, click here.

Duty of Care

Here has Money Marketing we have worked to raise the profile of protection.

The consumer obligation applies to consultancy firms of all sizes and we’ve looked at how it will affect this area in a podcast series with Royal London.

On the latest, our feature writer Amanda Newman Smith was joined by Royal London’s Shelley Read and financial adviser Robyn Allen to discuss the matter.

Inflation Bug

Inflation is on our minds and it is a challenge for the most experienced investors.

Ed Margot, head of client investment strategy at FE Investments, writes: “Around the world, developed economies are grappling with rising costs and the fallout from the war in Ukraine, among other issues.

“For investors, still adjusting to the post-Covid economy, these new economic circumstances present an entirely different challenge than those they faced until recently.”

Advisor complacency

There is a stereotype about the financial advisory industry: it is only interested in clients who have accumulated significant wealth in order to easily acquire assets under management.

This translates into a tendency to serve older clients, whose mortgages are paid off and defined benefit (DB) pensions.

The sobering fact for the profession is that this stereotype has a lot of truth to it. A recent report by Technical Connection for St James’s Place on the future of financial planning reveals the big picture today.

The sweet spot is older customers who have more wealth and income than younger ones. This is confirmed by research since nearly two-thirds (63%) of advisors actively prospect clients in the 51-65 age bracket.

The 66-75 age group is the second most popular cohort since it is targeted by 56% of advisors compared to those under 35 who are sought after by 25% of advisors.

Only a third (32%) of advisers even plan to prospect this age group and 21% of advisers are not currently targeting any new clients.

What do you think?


quote of the day

Retailers will likely feel the impact of rapid shifts in consumer spending and brace for continued instability ahead.

Adam Hancox, retail director for TransUnion in the UK, comments on the latest retail sales index from the Office for National Statistics

Stat Attack

MHR surveyed over 500 senior executives from leading organizations in the UK and Ireland as part of its Business Resilience Report to find out their views on business resilience and the future of their organisations.


Largest organizations in the UK and Ireland say they need to significantly improve their financial planning and analysis to support their future resilience to market shocks


Respondents who have made significant changes to increase the resilience of their business over the past five years said that more informed planning and analysis was one of the ways to do so


of organizations are “very confident” in the accuracy of their business reporting and modeling

Source: MHR

In other news

The Financial Technology Research Center has announced that Martin McKenna, an industry expert with deep knowledge and expertise of the consulting market, will join the FTRC team.

His focus will be to support the business on its growth journey, using his experience to help shape business and operational thinking around the changing business and customer environment.

McKenna has worked in the financial services world for 30 years, working in many key disciplines including as an advisor and in the product world for a life insurance and investment company.

Previously, he was head of e-commerce at Bankhall, senior business consultant for bespoke financial services software company Focus Solution and most recently head of business systems design for Standard Life.

By the way

Airbnb permanently bans parties and events worldwide (BBC News)

The risk of a Fed about-face (Financial Times)

£5billion boot sale dropped as potential buyers struggle to raise cash (The Guardian)

Have you seen?

Decisions and figures from the Financial Ombudsman Service can always be interesting. It upheld 49% of complaints against financial advisers for mis-selling and/or adequacy of advice in 2021/2022.

And it has resolved 570 complaints against financial advisers in this category according to the FOS’s annual complaints data released on June 28.

This for the 2021/22 financial year from April 2021 to March 2022.

Unsurprisingly, the transfer of defined benefits (not to Sipp) is the category for which the FOS has received the most complaints, at a rate of 52%.