Lonsec says new tool streamlines best interest duty obligations

Lonsec says its new ‘Products Like This’ feature, available on its iRate portal, streamlines best interest duty obligations by ”quickly and easily” comparing products in an existing portfolio to over 10,000 products and generating a shortlist that matches the criteria.

The shortlist then provides a side-by-side comparison of product information, which Lonsec says will assist financial advisers in identifying the most suitable product for their clients.

“In all our discussions with advisers, demonstrating best interest duty obligations has been a pain point for many of them,” Lonsec CEO Mike Wright said.

“In developing this simple to use tool, we are providing advisers with impartial methodology and rationale for their product recommendations and saving them time by embedding compliance into their advice process.” 

The new feature comes after Adviser Ratings’ Landscape report released last week, which looked at how financial advice has been impacted by the changing nature of wealth management through a number of projects including over 40,000 surveys of advisers and consumers, found that advisers intend to use investment platforms more in 2022 to “service clients more effectively and efficiently”.

Adviser Ratings CEO Angus Woods said the findings reflect an advice industry that has been “in a state of flux for a number of years” and that change continues.

“The advice and wealth management industries continue to evolve, and the impacts across the board, from product providers through to consumers, is significant,” Mr Woods said.

“Our research asks many questions on how Australians will receive advice in the future, and who will advise them.”

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.