Wealth Wizards launches algorithmic abridged advice service

Wealth Wizards today announces the launch of its automated ‘algorithmic’ abridged advice service for DB transfers. This follows the FCA’s confirmation, following CP19/25, that abridged advice will be a permitted service for triaging clients seeking full defined benefit transfer advice.

Wealth Wizards welcomes the introduction of abridged advice, but suggested that the service could prove resource-intensive unless financial planners adopt technology to deliver it.

Andrew Firth, CEO of the technology firm, said “Technology can streamline and modernise the market in the wake of the ban on contingent charging. It will enable advisers to automate key parts of the advice process, costing just a fraction of the traditional advice process. Relying on digital, compliant abridged advice will reduce risk considerably. This scenario will be both better for the adviser and for the client.”

The advice tech company has developed software that will enable financial advisers to implement a digital ‘abridged advice’ service. It will automatically filter out clients who are unlikely to be recommended for transfer without requiring the time and expense of a full advice service.

Andrew Firth, CEO of the financial planning technology firm, said: “Abridged advice will do much to help firms deliver low-cost advice to clients who should not transfer. Many firms want to keep their fees at a minimum – particularly for those who should not transfer – by offering a quick ‘fireside chat’ to triage clients.  But this is tricky from a regulatory perspective because it is likely to stray into providing a personalised recommendation.

“The answer is to automate the service with technology that is able to deliver fully-regulated abridged advice. This will speed up the triaging process, bringing down costs and providing a record of explainable and consistent outcomes, significantly reducing regulatory risk.”

The new digital service is part of a three-stage DB solution, fitting in with existing modules of Wealth Wizards’ flagship software-as-a-service (SAAS) platform, Turo. Stage one comprises in-depth education and guidance and stage two is digital abridged advice. Stage three is an adviser led full advice service for those clients who are deemed suitable for a full DB transfer evaluation.