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.”
Recommended for you
As the first quarter of 2024 comes to a close, Money Management looks back on the corporate regulator’s bans and AFSL cancellations in the financial advice sector.
Insignia Financial is holding ‘relatively steady’ onto its rank as Australia’s second-largest financial advice licensee after the Godfrey Pembroke exit but Count is hot on its heels.
Liberal senator Slade Brockman has said the government needs to have a “cold hard look” at the level of regulation in the financial advice space and the costs of running a business.
FAAA chief executive, Sarah Abood, has warned changes in the first tranche of the QAR legislation around advice fees documentation could create more work for advisers rather than less.