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Advisers hit out at £49 suitability report writer with ‘no IFA input’

Business-Portfolio-Pen-Paper-Briefcase-Coffee-Corporate-480.jpgAdvisers have hit out at a service offering suitability letters from as low as £49 with “no input” from the IFA.

Just Reasons Why Letters is marketing itself as the “UK’s only 100 per cent ‘done for you’ suitability report writing service”.

IFAs send JRWL the information they need to produce a report. The service promises client-specific, personalised reports within three days, which “look like you wrote them”.

JRWL will not contact clients at any time, but sends the reports back to the IFA for final approval, the firm’s website says.

Addidi Wealth managing director Anna Sofat says she has doubts over just how personalised the reports will end up.

Kim North: Why suitability is subjective

Sofat says: “This is not surprising as at least 50 per cent of any reasons why letter can be standardised so such a service is bound to happen and is happening via outsourced paraplanners. The only difference is that this is just focused on reasons why letters and so there is room for economies of scale.

“What I have a big question mark over is just how bespoke it can be to a client’s circumstances and how well it can cope with more complex areas. I suspect the cost for a transfer report would be much more expensive than a mortgage reasons why letter.”

Ovation Finance managing director Chris Budd says: “Outsourcing can be ideal for some, but I’d be wary of seeing suitability letters (for isn’t that what they are called?) as a tick in a box.”

A senior paraplanning source told Money Marketing said they were “worried it will give outsourcing a bad name”.

The say: “It’s sausage machine report production not paraplanning. You get what you pay for. No adviser involvement? It’s a collaborative approach not ordering something from Ikea.”

JRWL did not respond to a request for comment.

For more news, views and analysis from Money Marketing and to continue the conversation, check out our updated LinkedIn page.

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