Investment Trends’ Adviser Technology Needs Report showed that just 38 per cent of advisers were using their planning software to manage client fee consents, while even less – 25 per cent – were using their platform to do this.
Meanwhile, compliance obligations topped the list of challenges advisers were facing in the workplace, with two out of three citing this as their biggest issue in the report, which surveyed more than 700 advisers.
Additionally, around 30 per cent of advisers had specifically referred to administration of FDS and opt-in provisions as their biggest headache.
“There is opportunity for both platforms and software providers to better support advisers in handling their compliance obligations, not just with back-office tasks, but with client-facing tasks such as client consent for ongoing fees,” Investment Trends senior analyst Bailey Hao said.
“While advisers appreciate help through greater automation, technology providers must also recognise that they seek assistance in communicating and engaging with their clients.”
Documenting ongoing service agreements was cited as the second-most burdensome compliance activity for advisers, with 49 per cent citing this, compared to 52 per cent who said file notes were the most difficult piece of admin.
In the planning software space, AdviserLogic was ranked the best for overall satisfaction and value for money, while Xplan was best rated in the financial plan production category for both simple and comprehensive plans.
In the platform space, advisers were generally satisfied with their platform provider’s range of investments – with 84 per cent rating this as very good – and online transaction capabilities, with 80 per cent giving this service top marks.
However the reporting capabilities of platforms left something to be desired, with just 65 per cent of advisers saying they were happy with their platform’s practice management reporting tools while only 63 per cent gave their platform’s tax optimisation tools a “very good” score.
The whole concept of 12 month FDS is a complete disaster for small clients. It is pernicious regulation purpose-designed by ASIC & the Industry Super Funds (while on one of their Qld junkets), specifically designed to make it more inconvenient to get ongoing financial advice. Annual FDS/Opt Ins don’t even exist in the UK or the USA & there is no plan to do so there. Plus ASIC’s review into Cost Effective Advice is complete waffle & a stalling tactic.
One fair and workable solution is to follow what the Corporation Act says in relation to NON ongoing fees, in Section 962A(3), where the adviser & the client agrees to a one off total fee, paid for by instalments over 24 months or 36 months (when the next review could be done). There is no law that says that a time poor smaller client must do an annual review. Some would call annual reviews over-servicing, particularly for younger clients.
We switched from XPlan to AdviserLogic in February, 2021 and are much happier. They both have down- and upsides but overall AdviserLogic was well worth the switch. I am glad we did. It was funny when XPlan used FUD (Fear, Uncertainty, Doubt) to dissuade us but the effect was the opposite. At the time it seemed a close decision (disruption vs much nicer software) but that decisively tilted the balance.
When your major customer is AMP Advisers or AMP owned licensee’s…. technology is always going to be below the rest of the world.
look this is a big issue and one that regulators have not considered, let alone the FPA for example, in their approach. Working through the technology with adviser support in mind is critical yet those powers (AFSLs etc) to design and improve compliance requirements are inept and useless. It is high time this was raised as a red flag.