The Financial Conduct Authority (FCA) is considering handing advisory firms a further six months to implement the incoming Consumer Duty rules beyond the April 2023 deadline.

With the new rules set to come into force at the end of this month (31 July), adviser firms currently have until April 2023 to implement the necessary changes to their operations.

The regulator is now considering adding a further six months to that timeline, meaning advisers would have until October next year to finalise their preparations.

An FCA spokesperson told COVER that the regulator is still considering "every option" and that an official course of action had yet to be finalised.

"We have received extensive feedback from industry and consumer groups to the consultation question on the implementation period and are considering all potential options.

"No final decision has been taken on implementation. Our final decision will be made at our Board meeting in July."

Within its June board meeting notes, the FCA detailed that adopting a "staggered approach" to implementing the rules was a possibility, which would allow firms "to embed and deliver against the new requirements," followed by a "suite of communication."

"The Board highlighted the potential reputational risk that the duty would not come into force during the height of the cost-of-living pressures, where consumers would need additional protections the most.

"Options to mitigate this risk were discussed, including placing an obligation on, or signalling to sectors most impacted by the cost-of-living pressures."

Research from financial services and product providers has found varying levels of readiness for the Consumer Duty.

Royal London research, published in May, found that while the majority of respondents stated they were satisfied with their preparations for the Consumer Duty, as many as one in five advisers said they hadn't heard of the regulation and as a result "won't have considered the level of change they may or may not need to make."

Around one-quarter (27%) of advisers believed that they will not have to make any changes to their business to be compliant, which Royal London labelled "surprising", while just 2% of respondents are planning major changes.

Speaking at last month's Health Insurance Uncovered broadcast, compliance specialist Branko Bjelobaba urged advisers to engage with the processes and guidelines, instead of burying their heads in the sand.

"Don't leave this to the last minute - you have plenty of time to understand what it means. A lot of the emphasis is on the insurer in terms of the product design, the quality, the information, but the intermediary also has a huge role to play in terms of understanding what the customer really does want, what works for them and exploring that with them," he said.