A trade body that was set up by advice industry veteran Keith Richards to help the financial services industry comply with the consumer duty rules has now gained more than 10,000 members.
Richards told FTAdviser that in just five months the alliance has grown to 10,000 members after it started life with 4,000 members - the same membership as the existing Financial Vulnerability Taskforce.
He said the early success of the Consumer Duty Alliance has sparked the interest of counterparts in the accountancy and legal services industries.
The alliance is also looking at how it can support individual consumers to understand the new regulations and access financial advice.
The CDA was set up in March and former chief executive of the Personal Finance Society Richards, who is now chairman of the alliance, says the hard work is just beginning for the group.
The CDA has brought together big names in the financial planning world, including Nick Cann, former chief executive of the Institute of Financial Planning, who heads up one of three forums that sit beneath the CDA umbrella.
It has so far been run on a voluntary basis but it is looking to hire two full-time members of staff.
Richards said: “We developed the alliance to be about the sector rather than an individual body - it is about its members. It is a unique opportunity to bring the sector together.”
Earlier this month former FCA specialist, Michael Lawrence, was appointed the chair of its new Consumer Duty Champions’ forum with the first session due to take place on September 19.
Entering the consumer space
Richards said the cross-sector engagement in the alliance has taken the group by surprise, with demand from other sectors linked to the industry.
And the group thinks there is scope to reach out to consumers to promote the industry.
“There are 8 million consumers who need advice, have the money to pay for it but don’t engage in it,” said Richards. “There is an element of mistrust.”
He said there were discussions ongoing about how the CDA can enter the consumer space.
Richards thinks having the chance to speak to others in the industry is key to meeting consumer duty regulations, which are subject to interpretation.
He added: “Firms are pretty confident that they are operating in the spirit of the rules and many believe that they go beyond that, but the truth is they are not entirely sure without benchmarking to others.
“Generally we review our business processes and find there is scope for change, but what consumer duty has done for quite a few firms is allow them to dig deep into the good job they were doing and make some adjustments.”
tara.o'connor@ft.com
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