This follows the FCA’s confirmation, following CP19/25, that abridged advice will be a permitted service for triaging clients seeking full defined benefit transfer advice.
Wealth Wizards welcomes the introduction of abridged advice, but suggested that the service could prove resource-intensive unless financial planners adopt technology to deliver it.
Andrew Firth, CEO of the technology firm, said “Technology can streamline and modernise the market in the wake of the ban on contingent charging. It will enable advisers to automate key parts of the advice process, costing just a fraction of the traditional advice process. Relying on digital, compliant abridged advice will reduce risk considerably. This scenario will be both better for the adviser and for the client.”
The advice tech company has developed software that will enable financial advisers to implement a digital ‘abridged advice’ service. It will automatically filter out clients who are unlikely to be recommended for transfer without requiring the time and expense of a full advice service.
Andrew Firth said: “Abridged advice will do much to help firms deliver low-cost advice to clients who should not transfer. Many firms want to keep their fees at a minimum – particularly for those who should not transfer – by offering a quick ‘fireside chat’ to triage clients. But this is tricky from a regulatory perspective because it is likely to stray into providing a personalised recommendation.
“The answer is to automate the service with technology that is able to deliver fully-regulated abridged advice. This will speed up the triaging process, bringing down costs and providing a record of explainable and consistent outcomes, significantly reducing regulatory risk.”
The new digital service is part of a three-stage DB solution, fitting in with existing modules of Wealth Wizards’ flagship software-as-a-service (SAAS) platform, Turo. Stage one comprises in-depth education and guidance and stage two is digital abridged advice. Stage three is an adviser led full advice service for those clients who are deemed suitable for a full DB transfer evaluation.
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Wealth Wizards’ flagship software-as-a-service (SAAS) platform, Turo, has been pioneering the automation of financial advice in the UK for a number of years with an established reputation in both the corporate and workplace markets. Its reputation as the trusted financial advice engine or ‘intelligence inside the advice industry’ has evolved to its own brand of digital guidance and advice, MyEva, which has recently passed a beta testing phase in which it was adopted by market leaders in fast-moving consumer goods (FMCG), luxury retail and central government.
Wealth Wizards was founded in 2009 with one aim: to use technology to make expert financial advice affordable and accessible to everyone. They have pioneered the combination of chartered financial planning with smart software engineering to deliver expert advice at an affordable cost via the internet. Headquartered in Leamington Spa, Wealth Wizards’ more than 80 employees are dedicated to providing seamless experiences across all of its products and services, empowering advisers and employers to help people make better financial decisions. Wealth Wizards Benefits Limited is authorised and regulated by the Financial Conduct Authority.