European data rules will be one of Intelliflo's priorities for 2018, its executive chairman has said.
Nick Eatock said data, and how it is managed, will be "major themes" for 2018 and there is already work going on to upgrade Intelliflo's iO system ahead of the introduction of the General Data Protection Regulation in May.
He said: "We are actively working with the General Data Protection Regulation working group to ensure we get iO in the best shape to help our customers meet the many challenges this new regulation is creating.
"Although for many advisers, effective data management may appear to be a drain on their resources, it is our belief that addressing this head on can have massive business benefits.
"Good data management in a system like iO can open the door to many business efficiencies that will enhance the bottom line and streamline the advice process, which has got to be good news for the future."
General Data Protection Regulation introduces a number of rules which will affect financial advisers, including the right to erasure, meaning an individual can request the deletion of personal data relating to them, and the right to access, meaning an individual can demand information on how their data is being used and a free copy of their personal data.
It also introduces the right to data portability, which means a person must be able to transfer their personal data from one system to another without being prevented by the handler of their data.
Meanwhile explicit consent must be obtained for the collection of data and all the purposes it is used for, while all data breaches must be reported within 72 hours.
Mr Eatock said one example of how advisers would be affected by this is the fact that ex-clients can no longer be contacted for marketing purposes unless they have specifically consented to this.
Advisers will also need to be able to justify keeping this data on file.
Mr Eatock said: "The need to have it in case of complaints from clients in the future is one justification for keeping it but General Data Protection Regulation also requires reasonable efforts are made to keep data up-to-date.
"It is a tricky one for advisers who have large amounts of historical client data."
Intelliflo has been running a series of working parties with representatives of some of the UK's largest advice firms and networks which has already met twice, with one of the main discussion points being around which data to keep and which to destroy.