More than half of new planner software development in 2012 was focused on the Future of Financial Advice (FOFA) reforms, research from Investment Trends has revealed.
The 2012 Investment Trends Planning Software Benchmark Report found that more than 50 per cent of new development for planning applications was focused on improving functionality around FOFA.
“Much of this year’s development activity was associated with the development of a client service package model layered on top of existing workflow functionality to generate the data for FOFA compliance,” Investment Trends analyst Ian Webster said.
Investment Trends have said that FOFA compliance and improved functionality was a core theme of software development throughout last year and it is likely to continue as a trend during 2013.
Earlier findings from Investment Trend’s 2012 Planner Business Model Report found that administration issues surrounding the reforms were a continuing challenge in the industry.
“Despite the revision to opt-in requirements earlier last year, most planners still see challenges arising due to the proposed FOFA reforms,” Investment Trends senior analyst Recep Peker told InvestorDaily.
“As a result, opt-in management tools and guidelines are one of the most common areas where planners say they want support from their platform and software providers, and dealer groups.”
Many small developers and some platform aligned applications have yet to implement FOFA complaint packages, preferring to wait and see how the changes will roll out.
However, the report found that leading applications XPLAN, Coin and AdviserNETgain implemented client service package models which provide data for fee disclosure statement production and ‘best interest’ test compliance.
“This approach extends an unprecedented level of application monitoring and disclosure to every part of a planner’s daily planning activities,” Mr Webster said.
“The introduction of client service package-based planning is likely to be as significant a change to planners’ activities as the introduction of approved product list functionality several years ago.”
Developers also focused on improving risk product support due to a demand by advisers who see risk as being of continued importance.
