Industry Fund Services (IFS) has announced a partnership with technology company Advice RegTech to pioneer the launch of artificial intelligence (AI) regulatory compliance checking technology.
This human-assisted machine learning AI platform, called SAMI, will help IFS improve its risk management and compliance processes to ensure clients are being offered appropriate advice.
IFS offers both human based and digital advice to industry super funds as well as wealth management advice outside superannuation for fund members.
The new technological fix will allow IFS to abandon manual compliance sampling of client financial planning files and replace that with an automated pre-assessment of up to 100 per cent of files. That will vastly improve the volume of files audited, meaning more financial advice can be reviewed and checked at a faster rate.
While other advice providers are starting to introduce automated review of Statements of Advice (SOAs), IFS believes it will be one of the first licensees to use a machine learning AI platform to conduct reviews of the entire client file. not just the SOA, thereby further reducing the risk of error, IFS said in a statement.
IFS Chief Executive Cath Bowtell said the new partnership will reduce the risk for industry fund members .
”At IFS our focus is on delivering the best outcomes for members – that’s why we’re constantly ensuring our risk management processes are stringent and that we’re delivering efficient tools and systems for our clients,” Ms Bowtell said.
“We’re really excited at this opportunity to continue improving our offering which ultimately helps us provide advice that industry fund members can trust.”
The partnership with Advice RegTech brings together two organisations that share a commitment to providing trusted financial advice to consumers and improved efficiencies for practitioners, Ms Bowtell said.
Advice RegTech was recognised as Compliance Innovator of the Year 2019 in the FinTech Business Awards. It is a specialist in the financial services sector and designs solutions to improve financial advice compliance and oversight of best interest duty for consumers.
“Advice RegTech is excited to support an organisation that shares a similar vision to improve outcomes for consumers, and to enable greater efficiency so that more Australians can benefit from quality advice,” Advice RegTech’s CEO Samantha Clarke said.
IFS operates its financial advice business on a fee-for-service basis. with the size of its fees depending on the type and complexity of the advice you receive and the time it takes us to prepare a client’s statement of advice (SOA). IFS financial advisers are paid a fixed salary and do not charge or receive commissions.
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