Regtech aims to put an end to ‘bad advice’

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Plans for an automated compliance process that guards against mis-selling have reopened the debate over whether regulatory technology can help solve the advice industry’s suitability issues.Money Concierge, primarily a technology company with an advice arm, told FTAdviser it is intending to develop a remote advice process based on a compliance system designed to ensure an adviser “can’t go wrong”.Peter Deane, chief operating officer, said: “Through real-time compliance oversight of the advice process, we are aiming to reduce the incidence of mis-selling.“[The technology would] lay out guidelines and paths that allow the adviser to move fluidly through the advice process, while picking up key pieces of language used… to create clear and definitive decisions with the customer.”Money Concierge said the ‘regtech’ will take approximately 15 months to build. The system is currently in the fundraising stage.Simon Bussy, director at Altus Consulting, said it was “encouraging” to see businesses pushing the boundaries to improve the quality of advice for the consumer.“Any system that can help give advice, and also clearly explain why it made the choices and decisions it did, is exciting,” he said.“[The use of this] in financial services is relatively new, and …

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