Why managed accounts have implemented change in advice through pandemic

On a new episode of the ifa Show, BT’s head of managed accounts, Zac Leman, discussed the rise of MAs over the last decade and particularly throughout the pandemic.

Mr Leman said the abrupt shift to digital by advisers to improve efficiency and scale aligns with the growing use of MAs.

“Being able to manage a portfolio across a large cohort of new client and implement changes in real time, rather than having to go and produce advice documentation, such as an SOA or an ROA, and send that out to every individual client, get their consent, and then have to implement the changes, or implement the trades, or whatever it may be, that can take a lot of time out of a practise or out of an adviser’s day,” he explained.

“So managed accounts have provided an efficient way of being able to implement change.

“And what we saw over the pandemic…is managed accounts have provided advisers, or licensees, or dealer groups the ability to manage portfolios and respond to market events in a really quick and efficient way. They can make a decision on the day to adjust a portfolio and implement that same day. Whereas previously, it could take days and the opportunity could be missed.”

On the same episode, BT’s head of platforms distribution, Chris Mather, agreed with recent comments that the pandemic has accelerated technology adoption in financial services by around five years.

“My observation is that people won’t revert to manual processes. And [it’s] not limited to any particular cohort, whether it be a certain demographic of society, I think there is a real advantage of a speed of digital interaction,” Mr Mather said.

“But equally, we acknowledge that some parts of an advice process, and particularly emotional parts of an advice process may be better dealt face-to-face, but then some things, there’s a lot of efficiency in dealing digitally. But I certainly think that adoption will be for the overall benefit of the profession.”

Listen to the full podcast here.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.