Consumer Duty – Good practices lead to good valuations.

With Consumer Duty now embedded, many IFA firms are rightly reflecting on whether they’re meeting expectations — not just on paper, but in day-to-day practice. Recent findings published by the FCA have highlighted several areas where firms are falling short, and the message is clear: good intentions are no longer enough.

From a commercial perspective, it also raises a vital question — how will these weaknesses affect the value and future of your business?

At Harrison Spence, we work closely with firms looking to grow, prepare for sale, or simply tighten their operations. Increasingly, our conversations include how Consumer Duty is being delivered in practice. The Duty is a hot potato – because it matters to clients, regulators, and more importantly to prospective buyers alike.

Here’s what the FCA has flagged:

• Support not aligned to target market– Some firms are struggling to tailor support appropriately because they lack a clear understanding of their client base, including those with vulnerabilities. This could be a missed opportunity to provide lighter-touch services where appropriate, or to demonstrate higher-value care for clients who need it most.

• Post-sale support falling short– Too much focus on onboarding and too little on aftercare is creating poor outcomes. Issues such as long wait times and inaccessible information are still cropping up. Buyers want to see consistency across the client journey, not a front-loaded service.
• Culture not embedded– Some firms haven’t yet made the cultural shift the Duty demands. Without consistent training and visible change across the business, good intentions won’t translate into good outcomes.
• Limited oversight and monitoring– Relying on complaints or basic metrics like contact rates is no longer enough. This is especially risky when support is outsourced. Firms need robust MI and oversight that reflects a true picture of client experience.

What does this mean for you?

If you’re thinking about selling your business, these gaps can impact buyer confidence and ultimately, value. I can report that Consumer Duty plans and arrangements are appearing on purchasers’ due diligence questionnaires.  
But even if you’re planning to stay, strengthening your Consumer Duty approach makes commercial sense. We’ve helped hundreds of IFA firms through sales, mergers, and strategic reviews. What sets us apart is that we support both sellers and buyers, giving us a clear view of what good looks like and how to get you there.

Whether you want to improve your position before sale, or simply sharpen your proposition, I’d be delighted to speak to you. A no-obligation conversation could be the clarity you’ve been looking for.