Blockchain needed for advice fees: IRESS


Blockchain could be used as a solution to ongoing adviser fee arrangements, IRESS believes.
The financial technology provider’s chief executive, Andrew Walsh, said there was a need for a standardised automated way for new obligations to be met by all parties.
“The challenge is ensuring client consent information and its transmission is accurate, timely and efficient for all parties. No-one can solve this problem in isolation,” he said.
The new legislation would require platform operators and superannuation trustees to satisfy themselves that consent for ongoing service had been given tot the adviser before deducting advice fees via a platform.
“Blockchain will provide a single source of truth to allow all parties to be confident in the accuracy, timeliness and currency of data,” Walsh said.
“This will include leveraging IRESS’ recently-acquired blockchain platform. A single approach will also ensure greater efficiency for industry parties.”
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.