Through the advice benchmarking service, we compare recommendations with both actual packages bought, standard models for advice, and common advice goals. It allows you to understand in aggregate how your advice business is performing against the market as a whole, and against a variety of benchmarks for ‘reasonableness’. It is possible to automate the process, identifying exceptions for reporting.
We determine the appropriate benchmarks for comparison. At present, we prefer a form of capital needs analysis, Jensen equivalent households, quoted norms, and your own process rules (where possible).
We define a test-pack – a group or sample of advised cases, from as few as a dozen representative files to a data file containing hundreds of cases.
We compare the outcomes of the advice process with our benchmarks and report on the findings.
We guide you through a process of checking variances and exploring the reasons for them – feeding this information back into your advice process. In second and subsequent rounds of advice process checking we can use your own ruleset as the benchmark.
Through the use of our advice benchmarking service, your adviser business will solve the challenge of an unsynchronised, individualised advice process
An adviser business, ideally with ten or more advice-giving staff, looking to update their advice process to be more compliant with regulations would benefit most from this service. Any advice business where there are so many advice engagements that inspection of each advice file by a compliance person would become uneconomic. This is about applying our experience in digital advice systems to support your business.
Using this service takes the hassle out of generating a standard advice process that is user-friendly, meets client needs, and is compliant with regulatory standards. Using our service ensures that your adviser business has an advice process that you can be confident reflects your business policies. When exceptions are found, they are dealt with appropriately.
When advice benchmarking is necessary
- Objective assessment of services
- Independent process management
- Improving business processes to increase confidence