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Financial Planning

CFS adopts advice consent solution

Colonial First State has partnered with Iress to help it comply with the newly introduced ongoing advice fee obligations.

The blockchain-supported solution will manage advice fee consent requirements for clients on CFS's platforms, FirstChoice and FirstWrap. CFS will shortly begin the initial six-week rollout.

The solution supports advisers and licensees via a new workflow within Xplan, which is then validated and authenticated through the blockchain, and passed through to CFS, Iress chief commercial officer Michael Blomfield said.

"Through Iress, CFS will have access to this leading technology to ensure the once onerous process of record-keeping becomes easier for advisers and their clients," he said.

The annual renewal obligation came into effect on July 1, as recommended by the Hayne Royal Commission.

A client who does not renew an ongoing fee arrangement with their adviser for example, will terminate the arrangement 30 days after the end of the renewal period.

CFS chief distribution officer Bryce Quirk said: "We are pleased to be first in market and involved in designing and testing this solution for managing ongoing service advice fee consent obligations."

Quirk added that the partnership was in response to feedback about assisting advisers and licensees to meet their obligations under the new laws and to minimise the administrative burden on their businesses.

Read more: IressColonial First StateBryce QuirkMichael BlomfieldXplan