Skipton Building Society’s financial advice arm is urging the industry to adopt a Unipass Letter of Authority as a means to speed up the market processes and create better outcomes for customers.
A letter of authority is a legal document, signed by the client, which allows their adviser to correspond with providers on their behalf.
Currently, this can be a slow, fragmented, mainly paper-based system, causing frustration for advisers as it leaves clients waiting months for providers to accept the authorisation.
Skipton said moving to a digital LOA creates efficiencies and consistency throughout the process and helps providers conform to consumer duty, avoiding the potential of creating ‘foreseeable harm’, and delivering a significantly better service for the end client.
Helen McGinty, head of financial advice distribution at Skipton Building Society, said: “The customer is the most important part of what we do.
“We’re here to give them the best possible outcome, and we think the Unipass LOA is a clear and obvious enhancement to the customer experience.”
McGinty explained that having a way to communicate rapidly and digitally with providers means the firm can work with greater speed and less friction.
“Frankly, it makes our processes smoother, and it means we can keep our customers bang up to date on progress,” she said. "That’s a win-win in my book.
“I know that integrating a new system or process is not always easy or straightforward, but in asking providers to adopt the Unipass LOA, we’re asking them to join us in putting the best interests of the customer first.”
Skipton has been using the Unipass LOA service for subscribed providers since early 2023.
Anthony Rafferty, chief executive officer of Origo, said: “Origo has been delivering solutions for the industry’s pain points for over 30 years.
“The LOA process is one that had fallen behind in terms of where the industry is at with technology.
“Developing Unipass LOA was a clear win for advisers and their clients as well as providers, making their process more cost effective and consumer orientated.”
Rafferty added: “In a fully outcomes-focussed regulatory environment, providers are quickly realising the benefits Unipass LOA delivers for them, advice firms and the end client.”
sonia.rach@ft.com
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