“For too long advisers have been 'selling' products that meet their needs and not those of the client, and lenders often fail to act responsibly and treat customers fairly,” he said, using the example of the recent last-minute product withdrawals in the mortgage market.
“I always treat customers the way I would want someone to treat my children. When you act in such a manner, it's very hard to do things wrong.
"Unfortunately, not everyone acts the same way, and consumer duty won't change that I'm afraid.”
Austyn Johnson, founder at Mortgages for Actors, agreed, saying if every adviser did their job properly, this would not be an issue.
“Advisers need to advise, not flog products that have the best commission or will come off the books very quickly."
For Justin Moy, managing director at EHF Mortgages, although anything the size of the consumer duty will be “difficult to police”, it will only require small changes and adjustments by most firms.
“We just need to consider some refinements to what we do, where we can improve communication, and keep educating clients effectively,” he said.
sally.hickey@ft.com
