Since its official launch in July 2023, the Financial Conduct Authority’s (FCA) Consumer Duty has become a cornerstone of UK financial services regulation. Designed to ensure “good outcomes for retail customers”, the Duty has pushed financial institutions to rethink how they design, present, and support their products and services.
Its four outcomes—fair value, meeting customer needs, consumer understanding, and effective customer support—mark a shift from compliance box-ticking to proactive, customer-first engagement, claims Kidbrooke.
Almost a year on, the industry is still evaluating how far it has come—and how far it still needs to go. While the Duty has catalysed positive changes, there is growing concern over the pace and depth of adoption. At The Lang Cat’s “Divide and Conquer 2025” event, PFS Paraplanning Panel member Zara Okoro highlighted ongoing communication failures, noting that even after speaking to professionals, many clients struggle to understand basic financial concepts like annuities. She argued that more effort is needed to simplify financial advice and make it more relatable.
Samantha Gratton, chartered IFA at Ellis Davies, added that Consumer Duty has triggered soul-searching among advisers. Clients increasingly prioritise trust and peace of mind—intangible but essential aspects of financial wellbeing. Gratton suggested that while some of these values were always present in good planning, the regulation has made them non-negotiable. The FCA, in turn, is now reviewing aspects of the Duty, with early signs pointing to efforts to ease regulatory burdens while preserving consumer protection.
In this context, the emphasis is moving from simply implementing rules to proving their effectiveness. Firms must demonstrate they are acting in clients’ best interests—not just when required, but as a standard practice. This shift demands deeper operational and technological change.
Here, financial analytics offers a powerful solution. Deterministic modelling tools—such as KidbrookeONE—help firms provide consistent, personalised guidance based on clients’ unique financial situations. These tools simulate real-world outcomes, helping consumers understand the impact of decisions like early retirement or changes in investment strategy. For firms offering hybrid advice models, this digital clarity fosters greater trust and meets regulatory expectations around consumer understanding.
One critical area where analytics can have significant impact is with “orphaned clients”—individuals no longer assigned to a specific adviser. These clients are at risk of falling short of Consumer Duty standards, particularly around communication and support. Automated digital journeys, underpinned by financial simulations, offer a scalable way to provide these clients with relevant, contextual guidance—even without adviser intervention.
By using structured analytics, firms can unify advice delivery across all channels—mobile apps, online portals, or human advisers. This not only ensures regulatory consistency but also strengthens commercial performance through better client engagement and retention. It’s a model that allows firms to scale their services without compromising compliance or personalisation.
Firms that embrace these technologies will be better placed to turn Consumer Duty from a regulatory burden into a market differentiator. Deterministic analytics reduce the subjectivity of traditional advice, allowing firms to deliver clearer, more consistent outcomes. They also provide a transparent audit trail, documenting every recommendation and decision in a way that meets regulatory scrutiny.
Looking ahead to the rest of 2025, wealth managers and advisers should prioritise five key areas:
Automate at scale using analytics to support consistent advice for all clients
Make digital journeys more accessible and engaging for all demographics
Reconnect with orphaned clients via tailored, digital-first solutions
Strengthen audit readiness with clear documentation and decision trails
Focus on what clients truly value—such as peace of mind and long-term impact
Consumer Duty is more than a tick-box exercise; it represents a cultural shift in how financial services operate. With the right tools and mindset, firms can deliver on the Duty’s promises while setting themselves apart in an increasingly client-driven landscape.
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