PIMFA has warned advice firms and wealth managers not to be “consumer duty zombies”, as the new consumer duty deadline to comply with the new regulatory regime comes into effect in 28 days.

Although the majority of firms have taken advice by the Financial Conduct Authority (FCA) that the consumer duty represents a “watershed moment” and they should take it seriously, PIMFA has stated that there may be a number of firms that are yet to act.

The trade association for wealth management, investment services and the personal investment and financial advice industry, has reminded those firms that there is a wealth of high-quality, original information and a variety of resources on the PIMFA website that will enable them to comply with the consumer duty regime.

Furthermore, PIMFA has published a free consumer duty paper, in partnership with some of its associate members including KPMG, DAC Beachcroft, Shoosmiths and Altus Consulting, which focus on sharing insights around areas that the FCA highlighted as being of particular importance when they spoke at a PIMFA CEO consumer duty roundtable in March.

The paper includes a summary of the consumer duty requirements and some of the challenges that firms face, practical guidance on likely FCA expectations, and tips for firms on substantive compliance and what this means in practice, as well as additional advice and steps to comply.

As warned before, the FCA’s expectation is for a cultural shift where the firm’s mindset and all product lines are aligned to deliver good outcomes for consumers. Existing product governance, code of conduct frameworks, and vulnerable customer strategies can provide a foundation for firms to build on to meet the requirements of the duty.

Head of regulatory policy and compliance at PIMFA, Alexandra Roberts, said: “With just 28 days to go until the consumer duty comes into force it really is time for firms to make sure they are ready, or at the very least, on course to be ready by 31 July.

“Firms have been warned before, but it bears repeating that the consumer duty is not just an extension of treating customers fairly. The consumer duty will bring about fundamental changes to the way in which firms are supervised and regulated and requires a cultural shift in attitudes.

“If any firms still need help there are lots and lots of resources on the PIMFA website but the team and our associate members are also happy to help so please use the information and resources available to ensure you meet the deadline.”

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