A new tool from data provider Defaqto aims to help financial advisers comply with new regulations coming into force at the end of this month.
Defaqto hopes its new consumer duty profiles will help make it easier for advisers to meet their new regulatory needs.
The profiles allow advisers to compare products, funds and discretionary fund manager portfolios using the same data.
It is expected to go live in the company’s software after July 31, when the new regulation comes into force.
It will also assess whether a product offers fair value compared to others or a fund’s peer group.
Paul Tinkler, head of insight and consulting at Defaqto, said advisers now face receiving data from providers which is “long and inconsistent” meaning they have to ask for further information.
He added: “Another frustration is working with differing data, which makes it challenging to compare providers on a like for like basis. All of this means that advisers are spending precious time trying to read and compare the various documents as part of their consumer duty responsibilities.”
The profiles are set to include a range of documents for funds in what Defaqto calls an “easy to read format” for advisers and clients alike.
New consumer duty regulations will be introduced by the Financial Conduct Authority which set out the final rules in July 2022.
While the new rules come into force for existing products and services, for closed products are services it will be a year later on July 31, 2024.
tara.o'connor@ft.com
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