Since its implementation at the end of July 2023 , Consumer Duty has likely underpinned your approach to financial advice . Targets like making your clients a profit and keeping your costs competitive might seem like obvious ways to align with Consumer Duty principles . But a focus on financial wellbeing could also be key to delivering good outcomes .

Here , we ’ ll show you 3 ways that prioritising your clients ’ financial wellbeing could align with the ability to meet your Consumer Duty objectives :

1 . Avoiding foreseeable harms with a futurefocused mindset

2 . Supporting vulnerable customers through understanding

3 . The advice journey and long-term financial wellbeing

What ’ s the relationship between financial wellbeing and Consumer Duty ?

The aim of Consumer Duty is to improve outcomes for consumers of financial products and services . To help people meet their long-term financial objectives and avoid foreseeable harm . Financial wellbeing sits at the heart of this .

Good financial wellbeing means having security around money , now and in the future . But it ’ s also about mindset . Understanding what brings joy and purpose – and having money goals to achieve that happiness . We see strong ties between the benefits of improving a client ’ s money mindset , and the principles of Consumer Duty .

The concept of the ‘ wellbeing maximiser ’ is an approach to financial advice that we find particularly valuable . This means focusing more on the bigger picture of financial wellbeing among the clients you serve , rather than solely on profit and performance objectives .

Three ways to align financial wellbeing with Consumer Duty

Here are three examples of how a focus on financial wellbeing could help you to meet Consumer Duty outcomes .

1 . Fostering a future-focused mindset could help to avoid foreseeable harms

There ’ s a link between helping people picture their future self and them experiencing better outcomes . People who have a stronger connection to their future self are more likely to have built an emergency fund and are less likely to have high levels of debt .

You can play an important role in encouraging your clients to adopt a future-focused mindset . In turn , it could help them avoid foreseeable harm . Our Pensions Director , Steven Cameron , agrees , saying he doesn ’ t think many consumers could picture their future self on their own . ‘ To me , that ’ s a key role for the adviser , and an increasingly important role ’ he says .

We share examples of questions to help your clients picture their future selves in our Financial Wellbeing Index .

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