Three in four advisers are still producing suitability reports manually despite the time and cost penalties involved, says 1st - The Exchange.
A survey of advisers, conducted by The Exchange, found just one in five had moved over to efficient, technology-based systems.
Over 70% of respondents said they exclusively produce suitability reports manually, while around 5% use a combination of manual and technology-based systems.
However, the survey found a manual suitability report takes around 60 minutes to produce, compared with just 15 minutes when using technology, a 75% increase in efficiency.
The exchange says an adviser firm producing 50 suitability reports a week would save around 37 hours, the cost of a full-time member of staff.
David Child, managing director of 1st – The Exchange, says: “Research and feedback from firms who have switched to using e-services shows a marked increase in efficiency and cost-reduction, not to mention improved client service levels.
“As regulations continue to tighten, no doubt some of these firms will realise they have to increase technology within their business processes if they are to remain competitive.”
The survey also suggests 8% of advisers believe the FSA’s recent relaxation of suitability report regulations has actually made the process more complex due to the large number of report variations now available.
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Joined as head of strategy, multi asset, in June