Welcome to this month’s edition of the Tech Talk Newsletter! As always, we’re keeping you updated on the latest tools, insights, and news to help you stay ahead. December might be a quieter month for some, but our industry is buzzing with updates, especially around Consumer Duty and new innovations in financial advice technology. Let’s go!
New Diagnostic Tool to Tackle Consumer Duty in 2025
If you’ve been keeping an eye on the Financial Conduct Authority’s (FCA) Consumer Duty regulations, you’ll know the landscape is set to shift again in 2025. To help firms get ahead, the Consumer Duty Alliance (CDA) has partnered with The Consumer Duty Diagnostic to launch a new diagnostic tool.
This isn’t just another compliance checklist—it’s a dynamic tool designed to help firms benchmark their progress across critical areas of Consumer Duty, like cultural transformation, outcome testing, and client advocacy.
Keith Richards, CDA’s CEO, explained the reasoning behind this launch:
“The FCA is increasingly using data requests to evidence compliance with the duty and has signaled plans for random spot audits during 2025.”
The tool includes ten subject areas and 50 diagnostic questions. Answering these provides firms with a personalised report, offering actionable recommendations to plug any gaps, meet regulatory standards, and even identify potential growth opportunities.
The focus here isn’t just compliance—it’s outcomes. Richards made a great point about how the shift from prescriptive tick-box exercises to outcomes-driven assessments is already proving beneficial:
“Good consumer outcomes are leading to good business outcomes across the sector.”
But it’s not all smooth sailing. With a record number of Section 166 notices issued this year, firms are under pressure to tighten their practices. The CDA tool is a smart way to ensure you’re ready for whatever the FCA throws your way.
Making Financial Advice Accessible with LifeStage
Let’s switch gears to something super practical. WPS Advisory Limited, in partnership with Moneyhub , has launched a new app called LifeStage —and it’s a game-changer.
LifeStage was created to make financial advice more accessible and affordable. It’s designed to help users get a clear picture of their finances, from income and spending to savings, debts, pensions, and property. All of this is presented in one user-friendly dashboard, giving people the tools they need to make informed decisions.
Natalie Oliver, Head of Strategy at WPS Advisory, summed up the app’s mission perfectly:
“Our aim is to empower customers to manage their finances today, tomorrow, and in the future, while maintaining exceptional value for money.”
The app integrates with tools like:
- Guiide: A pension modeling tool that helps users create and manage retirement plans.
- Legado (joinlegado.com): A digital vault for securely storing and sharing important documents.
- SmartSearch: For instant anti-money laundering checks, ensuring compliance with regulations.
One feature I love is the data-sharing capability through Moneyhub’s sharing centre. Users can share their financial data with advisers, ensuring their advice is always based on real-time, accurate information. It’s a win-win—clients get tailored advice, and advisers get a clearer picture of their client’s financial situation.
Dan Scholey, Chief Commercial Officer at Moneyhub, described the app as a response to growing demand for workplace financial advice, especially in light of the FCA’s advice guidance boundary review. He also highlighted a key insight:
“Poor employee financial health impacts mental health, productivity, and retention. Employers have a big role to play in supporting their workforce’s financial well-being.”
The Problem with Platform Service: Parmenion’s Report
Now onto an issue that’s causing headaches across the industry—poor platform service.
Parmenion ’s latest report, The Impact of Poor Platform Service, created with the the lang cat, revealed some staggering statistics. Did you know that 95% of advisershave had to apologise to their clients because of poor platform service this year? That’s up from 2023 and a clear sign that something needs to change.
One adviser quoted in the report called the service they’ve experienced “unbearable,” citing long delays, lost records, and a lack of knowledgeable support. It’s no wonder 45% of advisersswitched platforms in 2024 due to frustration.
Platform transfers are a particular pain point:
- 90% of advisers associate transfers with negative experiences.
- Over 20% reported delays exceeding six months.
- Nearly 10% have waited more than a year for a transfer to complete.
These delays and inefficiencies are more than just an annoyance—they’re impacting productivity and eroding trust. Martin Jennings, Parmenion’s CEO, didn’t hold back in his assessment:
“In the new era of Consumer Duty, this year’s report is a disappointing read. Poor platform service is linked to a double-digit loss of productivity in advice firms.”
One proposed solution is for providers to publish standardised transfer data to improve transparency and accountability—something 89% of advisers support. Meanwhile, 75% of firms now favour cash transfers for their predictability and speed.
Steven Nelson, Insight Director at the lang cat, put it bluntly:
“Platforms must embrace technology and improve their processes—or advisers will vote with their feet, as we’ve already seen this year.”
As we wrap up 2024, it’s clear the industry is facing a mix of challenges and opportunities. From the evolving Consumer Duty landscape to the rise of tech-driven financial advice, the key takeaway is this: staying ahead means embracing innovation and focusing on outcomes.
At We Complement, we’re passionate about keeping you informed and equipped to handle whatever comes your way. If you’d like to learn more about any of the tools or reports mentioned, or if there’s something specific you’d like us to cover next month, let us know—we’d love to hear from you!
Wishing you all a productive and peaceful end to the year.