AMI's Reeve said the rules were about "empowering consumers to make good choices" and suggested advisers might have to adapt their processes to meet the new requirements.
"Advice firms will need to review their advice process and how, and at what point, protection products are raised.
"For example, if we know a customer has an X per cent chance of being off work due to illness or sickness, could it be argued that this was foreseeable and have we failed to deliver good consumer outcomes if we don’t discuss income protection or give it enough attention and focus as part of the advice process?"
While the consumer duty presented big challenges for providers, advisers and product design alike, Timpson said the rules were overdue.
"We get the regulation that we deserve. And, looking at some of the things that have been happening in the marketplace in recent years, treating customers fairly has not worked as well as it was intended to do. So it’s actually welcome.”
carmen.reichman@ft.com
