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Accurate client data management cuts risks

Rachel Wheeler Archive
Industry experts have urged financial firms to improve client data management to avoid putting customers at risk.

Jim Muir, director of financial data management firm AutoRek, and Andy Watts, intermediary director for wealth planning technology specialist Avelo spoke to the FT Adviser following the publication of research by the UK Financial Services Authority.

The investigation of a sample of 16 firms across the wealth management industry revealed that 14 posed a high to medium risk of detriment to their customers due to lack of adequate data management controls.

Furthermore, 79 per cent of files had a high risk of client unsuitability, with 67 per cent found to be inconsistent with the firm's house models, the client's recognized attitude to risk or the client's investment aims.

"These findings show how difficult maintaining and linking records held on different systems can be, especially in a fast-paced industry with lots of client movement in and out," Mr Muir told the source.

Posted by Paul Newton