A financial technology provider has called for an industry standardised approach based on blockchain, responding to new legislation governing ongoing fee arrangements.
The draft bill resulting from the royal commission will require platform operators and superannuation trustees to ensure consent for ongoing service has been given to advisers before deducting advice fees via a platform.
Iress has called for a standardised automated process for new obligations to be met by all parties.
The company’s chief executive Andrew Walsh said the problem can’t be solved in isolation – it needs to be collaborated on across the industry.
“The challenge is ensuring client consent information and its transmission is accurate, timely and efficient for all parties,” Mr Walsh said.
“As a response to discussions, we are bringing together adviser groups and platforms, and other relevant parties. This will involve adapting existing systems and working within existing data standards such as EPI to place the end customer at the centre of the advice consent blockchain.
“Blockchain will provide a single source of truth to allow all parties to be confident in the accuracy, timeliness and currency of data. A single approach will also ensure greater efficiency for industry parties.”
Iress recently acquired blockchain platform provider BC Gateways, with plans to expand its data sharing network across the wealth sector.
Mr Walsh commented the proposed industry standard approach would involve leveraging the newly added platform.
“We are well advanced with a blueprint ahead of launch, which we are planning in the first half of this year,” he said.
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