A new diagnostic tool will soon allow Financial Planners to benchmark their firms’ activities against Consumer Duty requirements using AI.

The software is designed to automatically carry out gap analysis in real-time and is free to use.

Audit reports are then generated by the outcome-focused tool, helping firms evidence their compliance.

Created by the Consumer Duty Alliance, with AI regtech platform Model Office, the tool allows firms to self-assess their performance in light of Consumer Duty.

The tool also signposts relevant FCA links and CDA guidance. It has also has aggregated supervisory dashboards, breaking down Consumer Duty into its constituent parts.

Keith Richards, CEO of the CDA, said: “Working with Alliance ambassador Chris Davies of Model Office on a pro-bono basis, has enabled us to broaden our programme of support and this new diagnostic tool will additionally provide evidence to the firm and FCA of their progress in meeting the duty’s regulations.”

Mr Davies, who is founder and director of the regtech firm, added: “Model Office is delighted to support the CDA in proving their own version of our award winning regtech to ensure members gain interactive, real time MI and data on all aspects of their Consumer Duty journey.”

This is the latest initiative from the CDA which launched in March 2023.

The industry body was established with the aim to build a “sector-wide alliance” of good practice and a directory of services to support members and the wider market. The new requirements came into force in July of that year.

Since then, the CDA has become increasingly vocal on the issues of best practice and compliance.

In March 2024, the CDA launched a new alliance – the New Talent Alliance – to boost industry recruitment. This is aimed at bringing together several professional groups to device strategies to position the profession as a career of choice.

The Steering Group is made up of key stakeholders from CII, CISI, LIBF, M&G Wealth, SJP, Quilter, NextGen Planners, Verve Group, Bespoke Training Solutions, Brand Financial Training and Anthony George Recruitment.

And in April 2024, the CDA gave public backing to a new retirement taskforce chaired by leading pensions campaigner Margaret Snowden. The Retirement Income Taskforce (RIT) aims at “collectively tackling” the challenges facing the sector alike.