Lonsec launches product ratings tools

In a statement issued by Lonsec, the research house said the BIOmetrics tools are a part of its Better Investment Outcomes program, which responds to the industry and government’s push to improve the quality of advice across Australia.

“Government and regulators have reshaped remuneration practices and increased adviser obligations around personal financial product-based advice,” Lonsec Research chief executive David Erdonmez said.

“Today, financial advisers are required to better assess the ‘fit’ between the financial products they recommend and their clients’ needs, preferences and tolerances.”

“We are now arming advisers with the collateral to make more informed decisions in this regard,” he said.

Lonsec explained the BIOmetrics suite is divided into three categories for rating products, including features and benefits, aggregated risk and cost.

“The tool suite will be rolled out over the coming months, with two metrics being launched today: Financial Product Complexity and Standard Risk Measure,” a statement from Lonsec said.