Push for software to fill client data void
Industry calls to develop more transparent fee structures in superannuation are fuelling demand for software companies to provide increased client information from super administrators and platforms, according to the managing director of IRESS, Andrew Walsh.
Speaking to Money Management, Walsh said as demand for more transparent fee structures grows, advisers are turning to software companies to provide them with a richer spectrum of client information from super administrators and platform providers. The added client information would help advisers more efficiently produce tailored superannuation and corporate super advice reviews, he said.
"What has come from the fee-for-service discussion is that [advisers] now need to represent themselves to these clients who are paying a very transparent fee, and in order to do that it might require [them] to be more active with some of those clients, and to do it at the same cost base or less," he said.
"It’s encouraging them to look for opportunities ... to report to super plan members in an efficient manner for advice but also for ongoing reviews, where in the past [planners] may not have been as active," he said.
Walsh said, traditionally, the information provided from administrators was based on investment transactions, but they were now working with a number of administrators to augment that information with insurance information, super contribution levels, underwriting status and balance details.
The search for efficiency was also encouraging advisers to look for increasing methods of engaging with their referrers, associated accountants and clients, according to Walsh.
However, Midwinter general manager of strategy and technical services Matt Esler said advisers tended to go straight to the platforms themselves for client information rather than looking to software providers to supply that information from platforms and administrators.
That would change as the software industry’s portfolio management capability improves, and feeds from platforms and other online sources are also improved, he said. Currently advisers would rather go straight to platform providers, he added.
Robert McCabe, head of product and technology at COIN Software, said the company was continually putting data feeds in place for advisers to accommodate emerging trends. Advisers need an efficient, customisable source of information, he added.
Recommended for you
ASIC has taken action against a Queensland adviser who was sentenced last May for misappropriating $1.8 million from his clients.
WT Financial managing director, Keith Cullen, says the firm is looking inward when it comes to M&A, with a focus on helping practices in its network become “bigger, better and stronger” via scaling up.
The Senate has opted to extend the date of the inquiry into Dixon Advisory and wealth management companies, having originally been scheduled to complete next month.
A former Insignia Financial C-suite exec has taken on a leadership role at MUFG Retirement Solutions as it announces chief executive Dee McGrath will depart after six years.
