The service is aimed at firms in its intermediary network at first, but it intends to roll the scheme out to non-members – although at a higher cost.
The plan marks a first time tie-up between an intermediary platform and the major information provider Equifax.
The new product aims to process client transactions much more efficiently with the “virtual elimination of paperwork”.
Besides freeing up adviser time to concentrate on more productive uses of time, the new scheme is intended to combat fraud more effectively, reducing regulatory concerns.
The system is easy to use and has attracted positive users during a pilot period.
Advisers need only enter the client’s title, name, address, marital status and phone number into a portal.
After several minutes the adviser will receive a decision and if that goes against the client, the reasons will be clearly explained.
The Tenet-branded system will be delivered through the Equifax intermediary portal, MyTouchstone.
This Tenet-Equifax partnership offers advisers “a robust, easy to use facility with no set-up costs, no minimum spend and a specially discounted rate of just £1 a search.”
However, non-Tenet advisers will have to pay more for the service – and while it is not currently clear how much that charge might be, it will be about £1.50 to £2 for each enquiry.
“It will expedite the authorisation process and provide a formidable barrier against fraud,” said Tenet distribution & development director, Helen Turner.
ADVISER COMMENT
Robert Lockie, a certified financial planner at Bloomsbury Financial Planning, said: “It depends on what sort of firm you are – whether you have a mass market client base or a smaller customer count. Comparatively, we have very few clients and among all the other paperwork, we don’t find anti-money laundering checks difficult or time consuming. When we meet a new client, we tell them about necessary documents so all we have to do is to scan the relevant information. Among all the other work and paperwork such as the advice letter when opening a new investment or account, it is really not much work and in my 12 years here, I cannot recall any delays to the method used in our checks. The cost of the service, even if unspecified, is neither here nor there but we won’t be adopting this. ”
However he does see value for some firms. “Suppose you are a high volume adviser but without enough new customers to merit a dedicated person, then this would be a good idea. It makes sense as it removes the scope for expensive errors while, at the same time, allowing advisers to get on with advice because they can avoid involvement in something which is not really their job. But with a very low number of new clients, we are not swamped so there is no value to our firm in doing this. As far as I am concerned, this is a solution to a problem we do not have.”
