Wealth management trade body PIMFA has developed a guide for firms to help them to develop their Consumer Duty implementation plan.

The guide outlines the main points that wealth managers should consider when putting together their implementation plan for the Financial Conduct Authority (FCA)’s new duty.

PIMFA said member firms must have plans signed off by their boards by 31 October.

The trade body said it had developed the plan to help assist wealth managers in developing their own implementation plans. Firms will need to assess how the examples could apply to their own business models.

The FCA’s new duty is one of the biggest overhauls to UK financial regulation since the Retail Distribution Review.

It will introduce a sweeping new set of rules which will require firms to do more to protect consumers from harm and bad financial decisions.

From July 2023, firms will be required to do everything possible to avoid “consumer harm” at every step of the customer journey.

The new rules are focused on the provision of value to consumers and evidencing it.

Under the new rules, which will come into force in July 2023, Financial Planning firms will be required to:

• Act in good faith towards retail customers
• Avoid foreseeable harm to retail customers
• Enable and support retail customers to pursue their financial objectives

Under the duty Financial Planning firms will have to provide consumers with information they can understand, offer products and services that are fit for purpose, and provide helpful customer service.

Firms will also have to evidence what they are doing to meet the Duty.