Midwinter has made a range of changes to its Client Manager and Reasonable Basis software in response to the Government’s recently announced FOFA reforms.
Midwinter welcomed announcements around scaled advice and added new scaled advice software developments within Cashflow & Capital, which the firm said will enable financial advisers to illustrate a client’s current position and a range of multiple alternative limited advice recommendations.
The firm also added a ‘Best Interest’ fiduciary matrix to its financial planning modelling tools.
“The new best interest fiduciary matrix will quickly demonstrate what the existing and recommended funds cost, and what their features and benefits are,” said Midwinter’s executive director – strategy and technical, Matthew Esler.
“If you have three existing super funds and you want to know which of those will be in the best interests of your client, the fiduciary matrix will compare the existing three funds against the alternative fund,” he said.
In response to opt-in requirements, the firm introduced a new ‘Traffic Light’ compliance framework to Client Manager, providing financial adviser practices and dealer groups with alerts regarding whether a client’s financial services guide, privacy policy and fact find has been provided or is up-to-date.
The system will cater for the new opt-in requirements for adviser remuneration, enabling the one-year confirmation and two-year opt-in certificate to be automatically generated and sent to clients, Midwinter stated.
Midwinter’s Client Manager has also been upgraded to enable comprehensive audit history across portfolio management, practice management and client relationship activities, including statement of advice and record of advice generation, the firm stated.
“With the new opt-in requirements the need to justify the cost of advice by simply demonstrating the value of advice provided and the cost to the advice firm of producing that advice was high on the development agenda,” Esler said.
“Midwinter’s modelling capability has been enhanced to highlight the impact of the client’s existing position and recommended alternatives over any investment timeframe.”
