A survey by consultancy Vignette into the efficiency of the financial supply chain has found that most IFAs believe the inefficiency of product providers and disorganisation of clients are at fault in slowing down admin processes.
IFAs say 58 per cent of product providers are disorganised and 17 per cent regularly lose customer documentation. On average, advisers leave at least 16 days for a provider to administer paperwork and 7 per cent say some providers can take eight weeks to respond to applications.
Ninety per cent of IFAs believe their clients blame them directly for the delays in processing paperwork and 58 per cent believe this has a negative effect on their reputation.
Advisers consider that clients waste 10 minutes per meeting trying to find personal documents and 52 per cent of clients can be described as disorganised when it comes to their personal finances and 28 per cent of IFAs say they leave meetings without all the rel-evant customer information.
Fifty-five per cent estimate that financially disorganised customers lose around £1,000 in missed investment opportunities while 19 per cent say it is nearer to £2,000, 14 per cent say £3,000 and 10 per cent say more than £3,000.
IFAs believe 79 per cent that clients could be helped with the introduction of an internet-enabled, consolidated view of personal finances.
Churchill Investments managing director Jamie Ware says: “We often have to copy in our clients on all correspondence to providers to prove to them that we are doing the work and we are not incompetent. However, it is up to the adviser to train the client into being organised and to be clear what is required from them.”