Platform providers must get ready for upcoming financial advice reforms now rather than wait for the government to legislate change, the head of platform administrator Linear has said.
Linear managing director Chris Hipkin said platforms should keep a step ahead of the Future of Financial Advice (FOFA) reforms by focusing on clients’ needs rather than regulatory change.
“We see being FOFA ready as a minimum requirement for platforms,” Hipkin said.
“Processes and paperwork should already be streamlined to minimise the administrative burden for advisers and dealer groups. We believe that offering tailored investment services and enhanced functionality is the next step if platforms are to meet the requirements of the evolving industry.”
Financial Services and Superannuation Minister Bill Shorten introduced the FOFA package in late April.
Advocates say the reforms would make adviser remuneration more transparent and increase consumer access to financial advice. Critics say some reforms would be costly to implement and ultimately make financial advice more expensive for consumers.
Linear said its platform had about 30 dealer groups representing more than 1000 advisers, but declined to divulge the platform’s funds under administration.
Large providers are looking at ways to incorporate certain aspects of FOFA into their platforms to help advisers make the transition if the reforms pass into law.
Linear said it planned to introduce adviser-driven investment and risk management strategies, as well as other changes.
