Wednesday, June 15, 2011
The proposed 'opt-in' legislation, which forms part of the Australian government’s Future of Financial Advice (FOFA) reforms, requires clients to periodically elect to receiving advice from their financial adviser.
The government would like to see consumers opt-in every two years, however Independent MP Rob Oakeshott has recently expressed reservations about the timeframe and seems more inclined for five years.
While the details are yet to be finalised, at IRESS we think opt-in will happen one way or another, so we want to ensure your business can manage the transition to opt-in efficiently and cost-effectively.
We are hearing that advisers are concerned about the extra time and associated expense that opt-in will add to their practices, and the flow-on effect that will have on their clients.
While there are a number of client service functions in XPLAN that help to manage ongoing reviews and the client service proposition, we plan to release some additional features. These will incorporate specific opt-in capabilities and automate the monitoring and ongoing management of opt-in.
Advisers will need to accurately monitor their obligations as part of the review process, and at the same time keep expenses to a minimum.
If managed correctly, opt-in is not just a new legislative obligation, but also an opportunity for planners to clearly articulate the services and additional value that they bring to the relationship with the client.
XPLAN Capabilities
The following provides an overview of the capabilities provided in XPLAN in the upcoming version 2.1 release:
- The existing 'review' functionality will have additional fields, specifically to capture the date of the next due opt-in date, and anniversaries of opt-in that may occur in-between. The anniversaries are important because the regulator's guidelines state that advisers must provide an annual report listing what services were offered and provided to clients over a 12 month period.
- Threads and tasks can be automated from the 'review' area, so automated activities in the lead up to the opt-in date can be automated without manual reports having to be run
- Alerts manager will be extended to provide notifications for any clients at risk of lapsing as their opt-in date comes up
- Dashboard widgets and reports will allow smaller businesses and dealer groups to track opt-in activity
- The review group opt-in and service benchmark functions will be made available in client online access for the client to view and opt-in themselves
- Emails sent from XPLAN will be able to have a link included that will update the client's opt-in status when clicked by the recipient
- Email syntax (coding in XPLAN's email editor) will support attractive presentation of the client's service benchmark area, so you can demonstrate services that have been provided, and propose client services for the next period.