The move follows the FCA’s green light for abridged pension transfer advice following CP19/25.
Last week the FCA banned most forms of contingent charging on DB transfer advice in PS20/6 but said that abridged advice could be permitted to ‘triage’ clients seeking pension transfers.
In its new DB transfer final rules the watchdog said it would allow advisers to provide an ‘abridged advice process’ to make initial advice more affordable.
Wealth Wizards welcomed the abridged advice option but believes that fintech support will be crucial for Financial Planners to deliver such a service at an affordable cost.
Andrew Firth, chief executive of Wealth Wizards, said: “Technology can streamline and modernise the market in the wake of the ban on contingent charging. It will enable advisers to automate key parts of the advice process, costing just a fraction of the traditional advice process.
“Relying on digital, compliant abridged advice will reduce risk considerably. This scenario will be both better for the adviser and for the client.”
The advice tech company says it has developed software that enables advisers to offer a digital ‘abridged advice’ service to clients and potential clients.
It will automatically filter out clients who are unlikely to be recommended for transfer without needing the time and cost of a full advice service, says the firm.
Mr Firth added: “Abridged advice will do much to help firms deliver low-cost advice to clients who should not transfer. Many firms want to keep their fees at a minimum – particularly for those who should not transfer – by offering a quick ‘fireside chat’ to triage clients. But this is tricky from a regulatory perspective because it is likely to stray into providing a personalised recommendation.
“The answer is to automate the service with technology that is able to deliver fully-regulated abridged advice. This will speed up the triaging process, bringing down costs and providing a record of explainable and consistent outcomes, significantly reducing regulatory risk.”