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.”