Lifeblood: Why Data Integrity is the Backbone of Modern Financial Advice
With growing regulatory burdens and client expectations, the integrity of data supporting financial advice isn't just important – it's critical. As the trusted data provider for 94% of the top 100 IFAs in the FT Adviser list, FE fundinfo understands the pivotal role that high-quality and readily available data plays in the success of advisory practices.
Let's explore why data integrity is so crucial and what's at stake if it's compromised:
Ensuring Suitability and Compliance
With the implementation of Consumer Duty regulations, advisers must demonstrate beyond doubt that their recommendations are in the client's best interests. This requires access to accurate, up-to-date fund and instrument data. Without it, advisers risk making unsuitable recommendations that could lead to significant financial losses for clients and potential regulatory penalties for the adviser.
At FE fundinfo, we collect over 7 million prices monthly, ensuring advisers have the most current and reliable data at their fingertips.
Building and Maintaining Trust
In an era where client trust is hard-won and easily lost, data integrity is paramount. Inaccurate data can lead to flawed analysis and poor decision-making, potentially eroding client confidence and damaging the adviser's reputation. With our database of 280,000+ share classes, advisers can provide clients with comprehensive, trustworthy insights.
Demonstrating Value
As competition in the financial advice sector intensifies, the ability to clearly articulate and prove value is more important than ever. Comprehensive performance and fee data allows advisers to showcase the tangible benefits of their services and recommended solutions. Our extensive database, with 5 million+ static values checked and updated monthly, provides advisers with the detailed information needed to demonstrate their worth convincingly.
Supporting Informed Decision-Making
Financial advice is only as good as the data it's based on. Accurate data enables advisers to conduct thorough analysis and provide clients with clear, evidence-based recommendations. Without this foundation, advisers risk making flawed decisions that could have far-reaching implications for their clients' financial futures.
Streamlining Operations and Fuelling Growth
High-quality, integrated data can significantly reduce the time spent on administrative tasks, allowing advisers to focus on core advisory activities and practice growth. Our unified advice ecosystem automates data transfer between systems, minimizing errors and freeing up valuable time.
Meeting Regulatory Requirements
In an increasingly stringent regulatory environment, robust data is the bedrock of compliance. Without it, advisers may struggle to provide a clear audit trail for their advice, risking hefty fines or even license revocation. Our team of experts continuously monitors the regulatory landscape, ensuring our data and tools evolve to meet changing requirements.
The high-stakes role of data integrity
The consequences of compromised data integrity are severe. Advisers relying on inaccurate or outdated data risk regulatory scrutiny and the penalties that come with it, not to mention loss of client trust and brand reputation. Bad data is bad for business: even the delays of reconciliation slow down operations and limit a firm’s competitive posture.
On the other hand, data integrity protects advisers from regulatory pitfalls, safeguards client interests and supports long-term viability of the business.
At FE fundinfo, we've been at the forefront of financial data provision since the 1980s. Our commitment to data excellence, backed by a global team of 1,100+ experts, ensures that advisers have access to the most comprehensive, accurate, and timely data available in the market.
