An adviser network has agreed a three-year deal with a compliance software company in a bid to meet the "unique challenges" presented by the Markets in Financial Instruments Directive (Mifid II).
Network Direct will roll out technology provided by Trailblazer Tracking to its appointed representatives and advisers in the coming months, with the service expected to go live in June.
The software is designed to help advisers comply with the requirements under the legislation, including functions which confirm if annual suitability assessments have been carried out.
Mifid II came into effect in January 2018 and from this year advisers have had to begin disclosing actual costs and charges associated with client investments to their clients, as part of annual suitability assessments.
Les Lee, managing director of Network Direct, which consists of 55 companies and 80 advisers, said each member has their own methodology for assessing client servicing which makes the network's monitoring of these programmes "time consuming and difficult".
He said: "Mifid II presents networks with unique challenges. It’s vital that we have oversight of the delivery of annual suitability assessments and that client servicing is being carried out in accordance with the agreement between the adviser and their client.
"We reviewed various systems to resolve the problem, but could not find a suitable solution until we met with Trailblazer Tracking, who demonstrated they had designed a bespoke system tailored to solving these issues."
Mr Lee added: "Over the next three months we will roll out the system to all our members and look forward to the benefits it will bring to the network, our members and their clients."
Trailblazer Tracking allows advisers to upload existing client data, manage client meetings, and to record client interactions in real time.
They can also use the software to set their CPD goals, record CPD undertaken and track their progress.
Nigel Ruff, managing director of Trailblazer Tracking, said: "It provides networks with high-quality management information and oversight of their appointed representatives, who in turn can more easily monitor their advisers.
"It gives both the network and their appointed representatives the confidence that the things they think are happening are - the system also reduces risk, while adding value to the businesses who use it."
rachel.addison@ft.com
