Nearly three in 10 Financial Planners (28%) surveyed in an exclusive poll for Financial Planning Today say they have cut the number of clients they serve as a result of the Consumer Duty.

The poll suggests the Consumer Duty, welcomed by many readers, has potentially restricted the availability of Financial Planning advice.

It appears likely some planners have jettisoned lower value clients and pushed up minimum client portfolio size to maintain profitability.

The findings, published today, are the first to be released from Financial Planning Today's Annual Financial Planning 2024 Reader Survey carried out in August with 150 Financial Planners and Wealth Managers taking part.

The FCA's Consumer Duty, introduced in July 2023 for new products and extended in July 2024 to legacy products, requires evidence that clients are being treated fairly at all stages of the "customer journey."

The findings from our survey back up other recent studies suggesting the many planners and advisers have been forced to review the profitability of clients in light of the additional Consumer Duty requirements. Some says they have cut back on client numbers and are likely to have dropped or passed on lower value clients.

The poll found that while planners welcomed the Consumer Duty, introduced in July last year, many have had to make significant changes to their business models.

Nearly four in 10 (37%) of our readers surveyed said they have increased the minimum investment amount new and/or existing clients need to have as a result of the Duty with a further 28% said they were reducing the number of clients they serve as a result.

The full details of the survey will be published in the next Financial Planning Today magazine in mid-September but the initial tranche of results suggests the Duty may have resulted in a review of Financial Planning advice and its profitability.

Close to half (47%) of our readers surveyed said they have significantly changed their processes to be more Consumer Duty compliant, such as increasing the frequency of reports or communications sent to clients.

Some 40% of readers said managing the Consumer Duty requirements was the biggest challenge they faced over the next 12 months and this was second only to increased regulatory costs in terms of obstacles.

Despite the negative sentiment in several areas, 44% of readers said the Consumer Duty was, overall, a positive development for the profession, in comparison to just 19% who felt it was negative. Some 27% said it was too early to say if the Duty would be a success.

• Financial Planning Today's 2024 Reader Survey was carried out mainly in August 2024 with 150 participants, most Financial Planners, Wealth Managers and Paraplanners, completing a detailed questionnaire online. Full results will be published in Financial Planning Today's next edition (Sept/Oct 2024 issue) with highlights published on Financial Planning Today website. Readers can subscribe to receive the magazine once registered on Financial Planning Today website.