As if the pandemic wasn’t causing enough havoc; it also coincided with the major deadline in financial services – tax year end.
Ideally, all our clients would have made their pension and Isa top ups, used their CGT allowance etc. well before 5 April.
However, for practical and human reasons (read: forgetfulness), this is often left until the last minute.
And recent events have highlighted for me the importance of platform administration and the need for better processes when attempting tax planning in the current situation.
I can discern no rhyme or reason to the requirements of each product with each provider.
Recent events have altered that opinion and highlight the need for simpler, streamlined processes.If one phones them, however, the well-meaning associate on the end of the line acts as if the need for a document signed in triplicate with wet signatures and the client’s blood type are well-known FCA requirements.
I would never wish to move clients away from platforms they are happy with unless necessary.
We are independent advisers, and I am usually happy to put up with minor inconveniences such as filling in extra documents for the sake of avoiding any cost to the client.
Cumbersome tasks
However, recent events have altered that opinion and highlight the need for simpler, streamlined processes.
Take the example of a simple Isa top up, held in cash.
Some providers require only a bank transfer by the client (with the account number as reference) but others a signed document, and the only payment option a cheque!
The government guidelines bring to the fore how outdated some processes are.
For example, when recently executing for a client on paying into an existing pension, one provider required two documents, one seventeen pages in length and one four, requiring signatures from both me and the client.
A difficult task given the timings they gave and the directive to stay indoors.
A combination of printing, scanning, and phone conversation overcame this hurdle.
The client posted the letter (via snail mail) along with a cheque (those old paper things banks no longer give out, unless specifically requested).
As her local post office had closed, she was unable to send it by recorded delivery.
Lo and behold, unfortunately the documents never arrived.
Handily, my client had scanned the documents before she posted, and thus could reprint.
However, the deadline was looming. Would they be able to cash the cheque in time?
Routine tasks can be made instantaneous or virtually impossible based on the kinds of back office system a provider uses. I called the provider for clarification again and, given the circumstances, was told the client could in fact telegraphically transfer the funds.
This was frustrating, given that I asked for the most straightforward way of completing this and was not told it was an option in the first instance.
Although this process was certainly somewhat stressful, it is also not at all unique.
Signatures
Many providers require cheques or lengthy paper forms to be completed. Some require signatures, some none.
Additionally, if clients are coming via an adviser, surely it is the adviser’s responsibility to have covered many of the bases listed on the lengthy application forms?
Routine tasks can be made instantaneous or virtually impossible based on the kinds of back office system a provider uses.
CGT summaries, performance data, asset allocation and so forth are entirely dependent on what is available on each platform.
I don’t want to come across as a lazy millennial. But, in 2020, clients should be able to expect a more streamlined process. At the other end of the efficiency spectrum, my preferred platform, Parmenion, have recently made it possible to use Docusign rather than a wet signature, even on new applications.
I can understand the requirement for a signature on a new application, so they have surpassed my expectations.
So, what would I expect from a provider?
A website where an adviser can alter and instruct money in or out without signatures (providing they have verified it is a genuine request), and which allows the client the option of sending a bank transfer, setting up a standing order, or sending a cheque, as they choose.
Also, a helpdesk where everyone sings from the same hymn sheet regarding these simple transactions.
I’m aware all the problems I’ve been discussing are far from insurmountable, and I don’t want to come across as a lazy millennial.
But, in 2020, clients should be able to expect a more streamlined process.
As someone smarter than me once said, one cannot add simplicity, only remove complexity, and I would rather do away with some old requirements than try and invent new ones.
Joe Roxborough is a chartered Financial planner at Ascot Lloyd
