Consumer Duty and the Advice Gap

The interaction between Consumer Duty obligations and the UK's widening advice gap is becoming a live supervisory theme, particularly for wealth managers and retail investment firms navigating the boundary between guidance and regulated advice.

Firms are understandably cautious about the liability implications of moving closer to that boundary, and that caution is, in some cases, producing a customer experience that Consumer Duty's fair value expectations may not straightforwardly support.

We're advising clients to treat this as a genuine strategic tension rather than a compliance technicality — one requiring a documented, considered position, not an informal default toward maximum caution that may itself carry Consumer Duty exposure.

This briefing reflects Alden Advisory's general commentary on a developing regulatory topic and is not legal or regulatory advice. Firms should seek specific guidance for their own circumstances.