Advisers sound alarm on £442m wasted on LoA inefficiencies

Regulator should play ‘proactive role’ in addressing LoA inefficiencies

Sahar Nazir
clock • 5 min read

The wasted cost of inefficient letters of authority (LoA) processes are currently £442m a year and is “extremely frustrating” for advisers due to “significant delays and errors”, according to The Pension Lab.

According to The Pension Lab's ‘What Lies Beneath Letters of Authority' report, the LoA procedure currently takes an average of 130 minutes to process, with letters costing approximately £111 each. Over 3.9 million LoAs are sent annually, with an average of 6.5 LoAs sent per month per financial adviser. Speaking to Professional Adviser, Yellowtail Financial Planning Chartered financial planner Dennis Hall said the process is "extremely frustrating due to its manual and paper-based nature, which seems to incur significant delays". "Think of any old school provider or a consolidator lik...

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