Fears planning software creates monkey workers

Members of the financial services industry have expressed concern that financial planners are over-reliant on proprietary software.

Money Management’s 2003 Financial Planner of the Year and principal of N.C. Bruining & Associates Nick Bruining said there might be a dependency on software evolving.

“Unfortunately, from my experience as a planner, I think what has evolved is dependency. That is, to a certain extent, the unhealthy dependency on the software to do the job of the financial planner,’ he said.

“Therefore, I think it’s a challenge on the part of the planner to continue to give professional advice to clients rather than simply rely on what the software may spew out.”

Iress senior business development executive Michael Kinens was similarly concerned and said advisers who relied completely on the output from a software tool without checking its integrity were at risk legally should the software fail.

Lawyer and principal of Alexis Compliance Risk Christina Kalantzis agreed and said regardless of whether the software was at fault, the planner ultimately held fiduciary responsibility for the advice.

“Even if it’s computer generated, the adviser has the onus and responsibility to review what’s been written in the advice,” she said.

Kinens argued that with studies showing advisers are working more than ever, the probability for an adviser recklessly accepting an answer without the necessary checks is highly likely.

“Ultimately, unless this issue is addressed, we’ll no longer have financial advisers but will end up with data monkeys skilled at doing nothing more than pressing a button and generating the same piece of advice that the adviser next door can generate,” she said.