Criterion, the independent integration standards body, has today launched its new Letter of Authority (LoA) Checklist standard for investment products. The new standard empowers financial advisers to request all relevant investment data in a consistent format, making it easier for providers to respond efficiently and accurately.
Designed in collaboration with Criterion’s expert industry working groups, the checklist sets out the key information needed to enable advice. By setting a consistent standard, it paves the way for greater automation – delivering faster turnaround times, improved accuracy and better outcomes for both advisers and their clients.
Completing Criterion’s suite of pensions, protection and investment checklist standards, this launch marks a significant milestone in tackling one of the industry’s most persistent pain points.
Charlotte Hughes, advice proposition lead at Quilter, said:
“For many clients, one of the first steps they take with their adviser during the financial advice journey is the LoA. But in too many instances, this first step can become a painful experience, due to a reliance on outdated technology and communication methods, or vital policy information being missed out of replies when they do arrive. Changes such as Targeted Support and the Pensions Dashboard are predicted to cause an increase in LoA volumes, so we as an industry should be doing all we can now to improve this experience, both for our people and our clients. The work that Criterion is doing, in creating an industry-standard Data Checklist for use with LoAs, represents exactly the sort of action our industry should be taking. I’m delighted to have been a part of the collaborative approach Criterion has taken when designing this checklist – and being able to share the knowledge I gained from supporting financial advisers for many years – to produce something which helps us all create better client outcomes.”
Justine Pattullo, chair of the Fix LoA Action Group (FLAG), added:
“At FLAG we’re focused on solving the longstanding challenges around LoAs, and Criterion’s checklist standards are a step in the right direction. This latest version for the investment market is a clear example of how the industry can work together to agree standard data points to help simplify processes, reduce delays, and ultimately improve the experience for clients and advisers.”
Nick Green, strategy and proposition director at Criterion, commented:
“By equipping advisers with clear, consistent checklists, we’re not just simplifying the LoA process, we’re shining a light on where inefficiencies persist. Our work gives the industry a shared view of what good LoA practice looks like and creates the foundations for more advanced, integrated solutions such as our LoA API standards.”
Advisers, paraplanners, fintechs and providers can download the investment, pension, and protection checklist standards from here: https://www.criterion.org.uk/loa
