Financial advisers and brokers will need to introduce more sophisticated systems for managing commission payments in order to comply fully with the outcomes of the Retail Distribution Review (RDR), according to Callidus Software.
Callidus says selling financial products without clear audit trails or standardised commission structures is likely to fall foul of the RDR and current IT systems will not be comprehensive or sophisticated enough to meet the new demands. It says the likely outcomes of the RDR mean product providers and sellers will need to introduce enhanced IT systems to automate commission management and give total transparency to payments. Existing software, such as in-house legacy systems, will not be sophisticated enough to meet the RDR’s needs and both advisers and providers risk non-compliance a...
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