Defaqto has launched a product and platform switching tool designed to help advisers boost their business and comply with Consumer Duty requirements.
The new tool will allow advisers to compare multiple platforms, general investment accounts, ISAs, Junior ISAS as well as bonds from Defaqto’s financial planning system Engage. Reports will also show reduction in yield on potential new investments compared to existing investments, covering platform, wrapper, fund and adviser fees.
Existing Engage users will receive 30 days free access, the firm said.
Glenn Porter, chief commercial officer at Defaqto, said: “One of the best ways for advisers to bring in new clients is to show them quickly and easily why they will be better off with them. It also provides an opportunity to attract more investment from existing clients.”
Defaqto said by using the new switching model, advisers will have one, easy-to-use solution and a unified methodology across their entire advice process.
“Even a small reduction in total costs can make a significant difference to your clients but the research can be complex and time consuming. When you have evidence that clearly shows where an investment portfolio is now, and where it could be, it’s an easy decision for somebody to trust your advice and it supports adherence to Consumer Duty,” said Porter. “Defaqto has high levels of awareness amongst consumers, so advisers also benefit from clients trusting that they’re making smarter financial decisions underpinned by our data and technology.”
The new launch follows Defaqto’s Pension Switching module in Engage.
Porter added: “Our Pension Switching tool has been a great success, allowing advisers to provide better client outcomes whilst reducing costs and the time spent on the switching process.
“While there are currently no set regulations for switching other products and platforms, we all know how important it is to be able to demonstrate that you have worked in the best interest of your client, an imperative with Consumer Duty now in play. The reporting capability of the new Product & Platform Switching module is a simple way for advisers to demonstrate their high standard of care and will already be in place if further regulations are introduced.”
