SOA generation could get down to 30 minutes
It will be possible to generate statements of advice (SOA) in 30 minutes through making use of technology, according to AdviserLogic.
In an on-stage interview at Money Management’s Fintech, Platform, and Wraps conference last week on the Gold Coast, AdviserLogic’s head of product development, Daniel Gara said the industry was not making use of what they already knew and that all advice was already personalised.
“Take two 40 year-old old men with families comprising of a wife and three kids. How different are their requirements for their growth portfolio and superannuation really going to be?” he said
“We have to sit there and tell the software, to use this platform and here are the different percentages for the different assets and the reasons why. We already know the reason, we knew it as soon as we saw the guy, not because we’re not interested in doing the right thing for him but because advisers have experience.”
Gara said planners might as well let the software input all of these details so that planners could concentrate the real value which was how their personal goals would be achieved through advice.
“By automating a lot of the processes we can get the time down significantly. I believe we can get it down to 30 minutes.”
In a separate panel, Lifespan Financial Planning’s chief executive, Eugene Ardino said taking 6.4 hours to create an SOA was about right as it took time to personalise.
“For me efficiency is more about cutting out parts of the process that don’t add a lot of value and I see that as being more on the investment side,” he said.
“So if you’re using a platform and managed funds there’s two loads of custody and administration, things like that. Using discretionary services like MDAs [managed discretionary accounts], managed portfolios, or SMAs [separately managed accounts], that cuts a lot of layers of compliance that probably doesn’t add a huge amount of value. So that’ how we try and build efficiencies.”
Ardino said platforms were good tools for efficiency in the MDA space as they included compliance and auditing measures.
Ardino questioned whether it was a good idea to cut down the SOA process.
“Shortening the time if you can get 6.4 hours to four you’ve saved 2.6 hours but have you compromised on advice? An SOA has to standalone on its own two feet,” he said.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
