New Consumer Duty tool launched to help advisers ‘stay one step ahead’

A new tool has been launched to help advisers ‘stay one step ahead’ of the FCA in the ongoing implementation of the Consumer Duty.

There is expected to be an increased focus on key aspects of the Duty during the first quarter of 2025.

To recognise this, the Consumer Duty Alliance (CDA), in collaboration with Consumer Duty Diagnostic, has launched the tool to help firms assess, quantify and easily report on their client-centric readiness and compliance status.

It will also highlight potential opportunities for sustainable business growth.

The tool is free to use for all alliance members and Affiliates. It takes just 10 minutes to complete and provides a platform for financial-services firms of all sectors and sizes to assess themselves against the Duty’s four outcomes.

The tool’s 10 subject areas and 50 questions will also help firms to benchmark their progress in terms of outcome testing, management information, cultural transformation and their support for client vulnerabilities.

Firms can also use the tool to discover new growth opportunities through, with and via their client base.

The tool offers:

• Diagnostic questions across all areas of the Consumer Duty and other key factors such as culture and client advocacy.

• A personalised report, sent immediately to the respondent upon completion, recommending a set of actions and programmes to meet Consumer Duty requirements and explore new commercial growth opportunities.

• A way to gauge and collate perceptions across multiple employees within the same firm, in terms of an organisation’s progress around the Consumer Duty.

• Expert support for firms wanting help to explore their diagnostic results.

Consumer Duty Alliance chief executive, Keith Richards, said: “The focus on the Duty’s outcomes, rather than compliance with what have often been prescriptive tick-box rules in the past, has already provided significant evidence of good consumer outcomes – in turn, good consumer outcomes are leading to good business outcomes across the sector.

“Notwithstanding, some challenges remain, and we have seen a record number of section 166 notices issued during the course of the past year – so staying one step ahead and addressing identifiable gaps sooner could result in good outcomes for all stakeholders.”