Effective database management could become more important for independent financial advisers (IFAs) thanks to increasing demand for greater information transparency.
According to IFAonline, data quality could become more important because these changes could mean IFAs will be required to allow clients to see their portfolios and any other information belonging to them.
However, without proper data management, it may be difficult for businesses to meet these requirements from clients and regulators as a disorganised database can be difficult to navigate.
The website urged IFAs to carry out "spring-cleaning" in preparation for regulatory changes that could be kicked in by the Retail Distribution Review in 2012.
According to the site, reliable data "is also necessary to segment client activity efficiently and to allow advisers to identify and spend more time with those clients who are likely to generate a higher revenue stream".
Meanwhile, Jim Harris recently explained in his OCDQ blog that underlying data quality issues will not be solved by simply upgrading to a new system.
Posted by Rachel Wheeler