Bankhall's IT director has slammed product providers for sending out electronic commission statements that do not match the amounts of money they pay into its bank accounts.
Director Nigel Hopwood says companies are issuing inaccurate statements which reveal major discrepancies between Bankhall's paper records and the sums that reach the bank.
The problem has reached such a scale that the latest research from Adviser Forum shows that more than 40 per cent of providers are sending out e-commission statements that do not match the amounts they put in IFAs' banks. It reveals that nine of the 22 providers analysed are experiencing serious technical difficulties.
Hopwood is demanding that life offices make a solid commitment to IFAs to tackle this issue. Forum members have made it clear that the ability to deliver e-commission transfers with the correct information will be a key selection criteria for multi-tie panels.
Adviser Forum research shows the industry could save a potential £8.7m a year by delivering commission information and payments efficiently to advisers electronically rather than on paper.
Hopwood says: “This is poor quality information on a regular basis, not just from time to time. We are experiencing quite variable discrepancies in the information that we receive from providers. It calls into question the integrity of the data and the system itself.”
Michael Philips proprietor Michael Both says: “If we cannot rely on providers to get simple accounting and payments right, how can we feel confident in trusting them with our clients' policies?”