The commitment emerged at an industry roundtable hosted by technology company Iress, after the platform provider publicly urged a standardised, holistic industry approach.
The proposed legislation resulting from a royal commission recommendation will require platform operators and superannuation trustees to be satisfied that consent for ongoing service has been given to the adviser before deducting advice fees via a platform.
Iress chief executive Andrew Walsh reported more than 80 people joined the platform provider’s roundtable, with participants agreeing there needed to be a standardised and automated way to ensure the new obligations were met by all parties.
“There was broad agreement that working together on a solution is the best way ahead, and have formed an early adopter group to help define how existing systems will be adapted to meet the new requirements,” Mr Walsh said.
Meanwhile CountPlus chief executive Matthew Rowe added it was crucial the industry work together to get the process right, particularly as the requirements will pile on work for advisers. His group has estimated how much extra work it would cop under the new legislation.
“Our modelling indicates the new disclosure requirements will create an additional 50,000 hours of non-client facing work, a 280 per cent increase,” Mr Rowe said.
“This time is better spent serving our clients, particularly now. There is a strong need for the industry to agree to a digital, consistent and automated process to ensure we can maintain a balance in meeting regulatory obligations, delivering for clients and having a financially sustainable advice profession.”
Iress has called for a standardised approach using blockchain, with Mr Walsh commenting the technology would provide currency and accuracy of data.
The early adopter group will begin defining and testing the proposed solution, with a view to launching when the new legislation comes into effect.
IOOF head of platform technology and architecture Damien O’Donnell said solving the problem with a technology solution is an “opportunity”.
“What we are looking for is an efficient, intuitive and standardised solution which will provide confidence we are satisfying our obligations to all of our stakeholders – members, clients, advisers and trustees,” Mr O’Donnell said.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.