Are licensees unwilling to fund technology solutions?

18 August 2020
| By Mike |
image
image
expand image

The Federal Government should be considering grants and tax incentives for the integration of regtech and fintech solutions to help drive down the cost of providing financial advice, according to the Financial Planning Association (FPA).

The FPA has also complained that financial planners working within larger organisations often find themselves hamstrung because their licensees lack the willingness to provide regtech solutions.

In a submission filed with the Senate Select Committee on Financial Technology and Regulatory Technology, the FPA pointed out that one of the biggest challenges for consumers accessing financial advice services was the time and cost it took to provide a piece of advice.

It said that the provision of advice took 26 hours and cost up to $6,500.

“Financial planners would benefit from being able to select from “Best of Breed” technology to significantly reduce the time and cost of delivering advice by improving the efficiency of advice delivery,” the FPA said.

“For this reason, the Government could consider grants or tax incentives for the integration of fintech and regtech solutions where it demonstrably solves efficiency and access to financial services for consumers,” it said.

The FPA also urged a standardised approach to data.

“Another benefit of this sort of standardisation is that the current challenge our members express when working for or being authorised by larger organisations, where there is a lack of willingness by licensees to provide fintech and regtech solutions to financial planners and their clients due to their organisational procurement process (as well as potentially facing their own integration challenges),” it said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago