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
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
