There will always be advisers and firms out there who look after their own interests first, rather than those of the investors. Where there are such poor ethics, software of this kind may either not be used, or the results bypassed. Conversely, however, the software may actively compel sellers to be client-oriented and transparent.
Indeed, Oberlechner points out that the new software promotes a win-win relationship between advisers and clients by enhancing advisory ethics, transparency, and personalisation. It not only boosts the efficiency and effectiveness of advisers, but also offers a modern, transparent way to communicate their personal style and needs directly with their adviser.
The software transforms investment advice into a more accessible, personalised, and understandable clients process. The results and explanations in the report make it easy for the investor to understand – and for the adviser to explain.
For example, selecting an appropriate risk level in a portfolio should consider not only risk tolerance (the risk people are willing to take) but also risk capacity (what they can really handle in terms of financial and personal circumstances).
The integrity of sellers will surely always remain paramount in this industry. Nonetheless, this is a promising step in the right direction and will hopefully prove to foster objective and viable financial advice.
Brian Bloch is a freelance journalist
