Changing industry regulations, customer demands and a need for streamlined processes - how Iress is helping independent financial advisers improve workflows and navigate changing regulations.
This time last year, advice firms nationwide were diligently preparing for the FCA’s new Consumer Duty rules. Almost a year later, the FCA has reaffirmed to advisers the new rules aren’t just about delivering good outcomes. Advice firms now need to be able to prove these outcomes too.
“The FCA has been clear in their expectations and behaviour, talking about supervision that will become more targeted, intrusive and assertive”, says John. “That’s left advisers with the challenge of actually how they report and prove these things, particularly when required to do so at short notice.
“The answer for me is technology. Advisers should look to their core business technology to support as much of this as possible. It’s never been more important to record everything that’s recordable, automate everything automatable and be able to report everything that’s reportable.
“The right technology can help everyone at the ground level adopt a repeatable process and give everybody at board level the MI and reporting they need to be sure clients are at the heart of their business.”
While John believes Consumer Duty is good for the industry, he reflects on the further pressure the new rules have put on already squeezed advisers, particularly with servicing clients in retirement. “This is an area where many people will want advice, delivered for a lower fee. Technology can help by allowing automation and building the most efficient process.”
Beyond regulation, advice firms also face the ongoing battle to keep pace with consumer expectations, often shaped by experiences outside of financial services. Client portals, as an example, were once considered a ‘nice-to-have’, but are now essential as consumers demand more digitised advice services.
The role of technology in the advice process is likely to jump even further following the outcome of the Advice Guidance Boundary Review, where the FCA will consider in part how technology can help close the advice gap.
“There’s a clear upside for advice firms that get it right, too. Traditionally, firms have had about 150 customers per adviser. That could easily be 300, 400 if you get the technology right.”
On a day-to-day basis, John consults with financial advice and wealth management firms on technology and how it can help with the challenge of Consumer Duty, the advice gap and meeting consumer expectations. “I’m genuinely excited by helping advisers get in front of more customers and helping firms thrive and prosper - whatever challenges come their way”.
Watch John’s interview with FTAdviser to hear his views on some of these topics, or you can see the full 10 minute interview here.
