A new UK body for the finance sector has launched in a bid to build a cross-sector alliance of good practice ahead of the incoming Consumer Duty rules.

The Consumer Duty Alliance (CDA), a not for profit community interest company (CIC), launched in London yesterday (9 March).

Keith Richards, who was chief executive (CEO) of the Personal Finance Society (PFS) from 2013 to 2021, will lead the new body as CEO.

Richards said: "With less than five months to go before Consumer Duty comes into force, the alliance is working with established experts to share knowledge,  learning, guidance and good practice to enable members to shape their own plans and  initiatives." 

Membership is free, and is open to individuals and firms who adopt its code of professional standards, and the consumer-facing ‘financial vulnerability charter'.

The CDA has excluded commercial activities from its remit with initial funding support provided by Legal & General and Howdens Brokers as foundation affiliates.

Richards added: "With no competition or commercial conflicts of interest to cause a potential  barrier, the CDA is encouraging all financial services organisations, advice firms and  individuals to join the Alliance." 

His comments follow a fractious few months for his former home, the trade body the PFS, which has been embroiled in a battle with its sister body the Chartered Insurance Institute (CII), over funding and the distribution of cash held on the PFS balance sheet.

The conflict has led to widespread condemnation of the CII by members of the PFS and other financial advisers and those in the industry.

According to a statement announcing its launch, the CDA was inspired by a Financial Vulnerability Taskforce member survey last year.

The survey called for more and broader support in relation to the incoming Financial Conduct Authority rule change, the Consumer Duty, which comes into force on 31 July.

The Consumer Duty Alliance aims "to provide a focal point for good practice and support as well as an  independent voice for the personal finance sector", it said in a statement.

The Alliance will also create a directory of established services to "support and serve" members, and the wider market.  

Individuals and firms will also be able to use their Alliance membership to further promote their own dedicated work and services in  respect of good client outcomes. 

Threesixty CEO Russell Facer said: "I have long been an advocate for  collaboration and fully support the principles and objectives of the Alliance. "This is a real  opportunity to unite and elevate the financial advice sector, whilst retaining the benefits of  diversity and choice."

The board of the CDA are all volunteers on a pro-bono basis. Additional directors are being recruited to ensure diversity, representation and inclusion.

Nick Cann, BEM and former CEO of the Institute of Financial Planning, will chair the CDA's Financial Planning Forum.

Its role will be to create practitioner-relevant good practice content, guidance and links in a pre and post Consumer Duty landscape. 

Cann said: "The Consumer Duty forum is an exciting opportunity not just for me but the wider financial planning community. After surviving a stroke ten years ago,  and living with aphasia, it is good to be back." 

Financial Technology Research Centre CEO Ian McKenna will chair the Alliance's Technology Forum. It will aim to create greater focus and understanding of the increasing importance  and use of FinTech across the sector.

McKenna said: "I am committed to this and believe technology can transform how  people live their lives, including financially. This forum will explore how we can help advisers put technological changes into  practice."

"There are so many different and emerging technologies that I am interested in understanding how advisers and  brokers address the challenges of big tech and the likes of Amazon breaking into financial services."

Financial Inclusion Commission member Johnny Timpson  said: "I believe  that engaging, informing and working collaboratively with all parties is going  to be essential to delivering and building on the promise of Consumer Duty, and in improving  consumer understanding, value, service, support, outcomes and trust." 

Laura Miller is a freelance journalist