Platforms have adopted a lot of new and unnecessary regulatory processes and need to step back and take a "sense check", according to one wealth planner and chief executive.
Addidi Wealth Management chief executive Anna Sofat has argued that since the Retail Distribution Review (RDR), platforms are demanding increasing volumes of paperwork and unnecessary tick-box exercises.
She said that they have moved from being very lightly regulated and putting the adviser at the heart of the investment process, to the opposite of this.
"They [platforms] seem to have become far more focused on compliance since the RDR. Sometimes the requirements make sense and sometimes they make absolutely no sense."
"In the last four months I have had to have more than a dozen client agreements re-signed. This is unnecessary and time consuming. I have also had to fill in new forms that duplicate other agreements."
Sofat also said in her view some of the money laundering checks that platforms have implemented are 'idiotic'.
"I am regularly asked whether I have seen a client's bank statement as part of a platform's anti-money laundering (AML) processes.
"Often I haven't, we don't deem this necessary, and I won't lie but this means I can't progress any further. And, the thing is, I don't believe that a bank statement determines a source of funds. That bank account could be money laundered.
"The onus for money laundering is on the adviser. We are closest to the client and know their lifestyle, their income details and the wider circumstances around their finances, and this is what helps us determine whether money is laundered or not.
"The platforms need to recognise this and take a sense check".
Sofat said she considered the situation "ironic" because when the platforms original USP was that they were very nimble and lightly regulated unlike the more cumbersome insurance companies, but that with increased compliance this has changed.
"The platforms need to ask themselves, what are we trying to achieve? Unfortunately this tickbox approach is exactly what the regulator has been warning the industry away from," she added.
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