Advisers too reliant on planning technology

financial-planning-software/Software/platforms/financial-planners/advisers/

23 July 2002
| By George Liondis |

Thegrowing reliance of planners on financial planning software, back-office technology and technology driven investment platforms could leave advisers facing damaging legal claims from their clients.

That is the warning from Tom Collins, of The Tom Collins Consultancy, who says the increasing dependence on technology by financial planners revealed in this year’sMoney ManagementTechnology Report, could leave planners open to being sued should the technology ever fail.

Collins questions whether planners will seek recourse from technology and software providers if sued by clients.

He says the reason for this concern is that planners have become accustomed to using the technology, but in most cases have little or no idea of the underlying formulae and systems which drive the technology.

Despite the growth of software, Collins questions, who, if anyone, was ensuring that software and technology systems were compliant.

He says that at the moment, industry standards for the provision of technology and software in financial services is lacking and that each player in the market has built their own system, further increasing the complexity and confusion among offerings.

According to the report, there are still some 15 platform providers and 15 financial planning software providers operating in a market where only about 40 groups have more than 50 financial planners associated with them.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 1 week ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 6 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 2 days ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

3 days 21 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5