The commitment emerged at an industry roundtable hosted by technology company Iress, after the platform provider publicly urged a standardised, holistic industry approach.
The proposed legislation resulting from a royal commission recommendation will require platform operators and superannuation trustees to be satisfied that consent for ongoing service has been given to the adviser before deducting advice fees via a platform.
Iress chief executive Andrew Walsh reported more than 80 people joined the platform provider’s roundtable, with participants agreeing there needed to be a standardised and automated way to ensure the new obligations were met by all parties.
“There was broad agreement that working together on a solution is the best way ahead, and have formed an early adopter group to help define how existing systems will be adapted to meet the new requirements,” Mr Walsh said.
Meanwhile CountPlus chief executive Matthew Rowe added it was crucial the industry work together to get the process right, particularly as the requirements will pile on work for advisers. His group has estimated how much extra work it would cop under the new legislation.
“Our modelling indicates the new disclosure requirements will create an additional 50,000 hours of non-client facing work, a 280 per cent increase,” Mr Rowe said.
“This time is better spent serving our clients, particularly now. There is a strong need for the industry to agree to a digital, consistent and automated process to ensure we can maintain a balance in meeting regulatory obligations, delivering for clients and having a financially sustainable advice profession.”
Iress has called for a standardised approach using blockchain, with Mr Walsh commenting the technology would provide currency and accuracy of data.
The early adopter group will begin defining and testing the proposed solution, with a view to launching when the new legislation comes into effect.
IOOF head of platform technology and architecture Damien O’Donnell said solving the problem with a technology solution is an “opportunity”.
“What we are looking for is an efficient, intuitive and standardised solution which will provide confidence we are satisfying our obligations to all of our stakeholders – members, clients, advisers and trustees,” Mr O’Donnell said.
Good to see discussion on these issues. Anything that increases access to advice should be applauded. Could someone please explain the role of industry associations? Seriously paying them $1,000 a year for a someone else to think of ways to reduce paperwork is a real WTF moment. Just why am I’m i paying fees for. I’m seriously joining the cheapest body out there and save my money.
If having to talk to their clients and discuss what they plan to actually do for their money will increase their non-client facing work by 280% then they should really look at the way they run their business.