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Sesame warns on admin burden

Sesame is warning advisers that the introduction of further regulation by the FSA could pose a serious risk to holistic financial planning.

The company believes the introduction of mortgage regulation and the increasing levels of paperwork will cause chaos for small firms.

Advisers will have to complete different types of forms for different types of product sales. For designated investments, advisers must produce a suitability letter, for mortgages, the adviser will have to produce a key facts&#39 document. The FSA will require firms to produce these documents in different formats.

Sesame director of sales technology Paul Yates says the burden of paperwork and ensuring accurate documentation of sales will be among the most significant concerns for IFAs.

Each set of rules will require advisers to prove that they have informed the customer of the basis upon which advice is being given and agreed with the customer the basis on which they will be remunerated for their services and advice.

Sesame&#39s software division Assureweb has developed mi-solution for advisers to keep up with the requirements.

Yates says: “I believe companies who cannot provide the correct documents in time for an FSA audit will get a rap over the knuckles from the regulator.”

Financial Research and Technology Forum director Ian McKenna say the industry should welcomes technology to help help advisers with the new processes.

McKenna says: “I believe tools like this are going to become crucial. If you look at the time spent by advisers in terms of administration it has got to be money well spent.”

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