Defaqto

Sep 25, 2023

25 September 202312:33 pm Defaqto has launched a new product and platform switching tool to help advisers boost business by showing clients how their investments stack up in terms of price and value. The tool compares multiple platforms, general investment accounts, ISAs, Junior ISAs, and bonds from Defaqto’s end-to-end financial planning software system, Engage. Defaqto said the new service will ease advisers’ work by removing time and complexity from pricing research. It will give advisers the power to model a client’s financial objectives, capture risk profiles, conduct investment research, and oversee client reviews. Engage is powered by Defaqto’s data, including more than 18,000 funds, platforms, and products. Defaqto said more than 30% of advisers are using Engage to give their businesses a competitive edge, with recommendations of £42bn annually going through the system. Glenn Porter, Defaqto chief commercial officer, said: “One of the best ways for advisers to bring in new clients is to show them quickly and easily why they will be better off with them. It also provides an opportunity to attract more investment from existing clients. “Even a small reduction in total costs can make a significant difference to your clients, but the research can be complex and time consuming. “When you have evidence that clearly shows where an investment portfolio is now, and where it could be, it’s an easy decision for somebody to trust your advice and it supports adherence to Consumer Duty. “Defaqto has high levels of awareness amongst consumers, so advisers also benefit from clients trusting that they’re making smarter financial decisions underpinned by our data and technology.” Porter added that the tools’ reduction in yield (RIY) calculator also allowed advisers to quickly illustrate the difference in fees between new and existing investment scenarios. Defaqto maintains the UK’s largest financial product database and uses proprietary research methodology to develop independent ratings, reviews, insights, and technology. It publishes financial product and market intelligence data, and also supports financial institutions, intermediaries, and consumers to make financial decisions. It said the new platform product follows the highly positive uptake of Defaqto’s Pension Switching module in Engage. “Pension switching has been subject to regulatory requirements for a while now,” Porter said. “While there are currently no set regulations for switching other products and platforms, we all know how important it is to be able to demonstrate that you have worked in the best interests of your client, an imperative with Consumer Duty now in play.”