Criterion has unveiled a new Letter of Authority checklist to tackle inefficiencies, with advisers facing delays of up to two months.
The Letter of Authority Data Checklist will enable advisers to set out the information they need and expect in response to the LoA. In a spreadsheet format, the checklist will simplify and streamline the cumbersome LoA process, ultimately stopping back and forth with providers, Criterion said.
The LoA Data Checklist was developed as a direct result of the Fix LoA Action Group, which highlighted that industry standards are pivotal in solving the challenges of LoA processing and boosting efficiency.
The data and process standards organisation said LoA remain one of the biggest administrative burdens, costing the advice industry £442 million every year, with advisers facing delays of 60 days, as well as inconsistent data and unnecessary back and forth communications when retrieving information about their client’s plans.
Nick Green, strategy director at Criterion, said: “For too long, financial advisers have had to tackle the inefficiencies of the LoA process and it’s time for real change. Providers should prioritise the adoption of LoA standards to eliminate delays and inconsistencies that hinder advisers and their clients.
“By using this Data Checklist and advocating for standardised practices, advisers can put pressure on providers to implement automation. The industry must move towards a more streamlined, adviser-friendly approach, this is a critical step in making that happen.”
Criterion is calling on all advisers to download and review the checklist, pointing out that their feedback and insight will strengthen the push for standardised LoA practices across the industry. Access for advisers is free, the firm confirmed.
Justine Pattullo, consultant at Pension Lab and chair of FLAG, said: “We are proud of the progress made since establishing the FLAG but this is just the beginning. Meaningful change requires more organisations to join FLAG and for advisers to actively engage with the LoA Data Checklist. Adviser feedback is crucial in driving industry-wide adoption of Criterion’s LoA standards.
“If we can get more advisers using standards, it helps push the case for providers to automate processes, reduce costs and frustrations and ultimately, creates a smoother, more positive experience for consumers.”
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