Platforms should stay ahead of FOFA
Platforms should not wait to see what changes are introduced under the Government’s Future of Financial Advice (FOFA) reforms, but rather should try and stay ahead of market needs, according to platform administrator Linear.
The success of platforms will depend on how well they anticipate the future needs of their clients rather than just responding to government regulation, according to Linear managing director Chris Hipkin.
“We see being FOFA-ready as a minimum requirement for platforms. Processes and paperwork should already be streamlined to minimise the administrative burden for advisers and dealer groups,” he said.
“The value of advice in the future will not just be about providing a one-size fits all solution, but about developing bespoke investment strategies. For advisers who already charge fee-for-service and develop their own investment products, the role of a platform needs to be about much more than just facilitating investment transactions.”
Hipkin said that Linear had made several upgrades to its offering, including the ability to produce Statements of Advice and Records of Advice online, manage template documents, rebalance infinite accounts and trade all assets in a straight through processing environment.
The platform also provides a framework for advice groups looking to construct their own platform with their own investment menus and functionality, he added.
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