Most advisers are not aware that issues with the new Financial Services Authority's (FSA) reporting requirements will result in them being unable to complete parts of their reports accurately, according to one software provider.
Barry Pitfield managing director at financial planning software provider JCS, maintains that the rules around 'Section K', a new segment added to the RMAR to reflect the incoming adviser charging rules, are unworkable, making it extremely difficult for firms to accurately report their income.
He states that it is impossible for this section of reporting to be done accurately. He said: "Different software houses are taking different approaches, none of which can fully meet the FSAs unworkable requirements."
"Unfortunately, the penny hasn't dropped for most advisers. There is so much in the post-RDR world for advisers to consider that they just aren't aware of this issue regarding reporting requirements," he said.
Pitfield spoke to a number of financial software providers following a meeting at the Finance and Technology Research Centre (F&TRC) last week. he said that several agreed that further pressure be brought on the FSA to revert back to its earlier more workable RMAR proposals.
"We [software providers] have had a number of conversations on the issue and there are a couple of ways in which we could attempt to address the issue and automate this part of the reporting requirements, but ultimately neither option satisfies the FSA requirements," Pitfield added.
The software companies have collectively contacted the FSA, but the regulator has said that formal FSA endorsed guidance on how to complete section K could take more than a couple of months.
And Pitfield is not holding out much hope: "As far as I am aware it has no intention of doing this work, stating instead that it may be something for the FCA to look at in the future."
The company has released a document explaining how and why the requirements are unworkable.
Our weekly heads-up for advisers
Former Neptune manager
27,000 transfers looked at
Consider risk capacity