Following the latest regulation from the FSA, distributors will be required to increase their level of professionalism by moving to a fee-based system, away from commission led practices, which will require changes to their financial planning software. In addition as part of the RDR distributors will also need to increase their level of qualifications which can be supported and maintained through financial planning software. This changing landscape means that distributors will need to revisit their business models and provide a clear indication of their service offering.
In light of these industry factors you could be facing issues such as how to:
- transition financial planning software to support a fee-based model
- utilise financial planning software to provide a consistent, compliant quality service regardless of adviser
- scale advice services and increase time spent with clients without increasing administrative overheads
- meet new training and competency standards brought in by the RDR
- provide advice relating to financial goals for longer term client management
- integrate existing back-office infrastructure with financial planning software
"The increased regulatory scrutiny under “Assessing Suitability” combined with the emergence of the multichannel environment being stimulated by RDR means that Financial Planning Tools will play an important role in the advice process. Advisers need to have a clear understanding of which financial planning software suppliers are able to achieve the highest standards. Our ratings are designed to assist with this process and the results achieved by Focus are commendable."
Ian McKenna, Director, F&TRC