The technology arm of trade association PIMFA has teamed up with Morningstar to launch a 'Duty of Care Tech Challenge' that will bring together the fintech and wealth management sectors in an effort to find ways of ensuring consumer duty rules are met.
Morningstar and PIMFA WealthTech are collaborating on a series of ‘Tech Sprints’ which have been designed to address common issues within the wealth management sector where technology could offer the most effective solution.
The first Tech Sprint will examine how customer focused technology can be best deployed to support the needs of wealth managers within the requirements of Consumer Duty. The consumer understanding outcome rules retain the obligation for wealth management firms to communicate information in a way which is clear, fair and not misleading.
Earlier this week the Financial Conduct Authority pledged to take "robust action" agains firms which failed to meet their obligations under the new regime. Results of a recent review of firms’ fair value assessment frameworks by the watchdog found that some firms are falling behind in their preparation and failing to address a shortfall in their technology resources.
The PIMFA challenge is inviting fintechs to come up with technological solutions for wealth managers to navigate these rules and help their clients. Fintechs will get access to Morningstar Portfolio Analysis APIs covering asset allocation, geographic breakdowns, sector breakdowns, ESG metrics, risk scores, goal analysis and costs.
Firms will be recognised as ‘Tech Sprint Innovators’ in PIMFA WealthTech communications, and get the chance to showcase their solutions to the industry at various industry events and briefings.
Keith Phillips, executive director, PIMFA WealthTech, says: The role technology can play in helping firms meet the new requirements of the Consumer Duty and serve their clients better has the potential to be enormous.
"We’re delighted to be working with Morningstar on this important Tech Sprint and invite fintechs that work in this space to participate and show the wealth management industry the type innovation and support they can offer."
Interested firm have until 19 May to register