Astute News: 2008 No 7
In this issue of Astute News, the following:
CONTENTS
1. DATA QUALITY SURVEY
2. TECHNOLOGY AND SUPPORT
3. TRAINING
4. COMPLIANCE
1. DATA QUALITY SURVEY
First, our thanks to all users who responded to our Data Quality Research Questionnaire conducted during April this year. We have analysed your responses and discussed the outcomes of the research with our content providers.
The survey, part of Astute’s strategy of “continuous improvement” to meet the challenges of an ever-changing financial services environment, set out to determine the quality of data available from product providers for financial advisers, directly and via the Astute platform or through its approved financial needs analysis (FNA) systems.
For the information of all our users, we are pleased to provide a summary of the findings of the research, and some actions we have identified to further improve our service.
In the independent research project commissioned by Astute to measure the accuracy and quality of data carried on the Astute website, and through the FNA systems linked to Astute, users indicated a high degree of satisfaction with the quality of data received from Astute.
Where there are concerns, these tend to relate to the completeness of data rather than its accuracy. However, where data discrepancies do exist, they represent inefficiency in the adviser’s financial planning process. This is because of the time lost and costs incurred in correcting inaccuracies.
The research process has also enabled Astute to assess the demographics and preferences of its users who were asked to express their views on data quality and accuracy.
In terms of the demographics of users surveyed, the largest group operates as independent financial advisers (47.5%), with agents at life offices constituting 33.1% and financial advisers at banks 19.4%.
High scores for correctness
When asked to rate the completeness and correctness of information provided by product providers, financial advisers provided a rating average of 4.37 out of a possible five. This rating is seen as the benchmark of measuring the correctness of information (that is, 100% correct), but as is also clear, the product providers did not score a full 100% in the rating.
On rating the completeness and correctness of information provided through the Astute website, the result was 4.18 (96% accurate compared to the product provider rating). The same average rating for FNA systems was 3.96 (91%).
Users were asked how often they requested information from the Astute website or FNA system and a product provider and it was evident that a relatively large number of users did duplicate requests, obtaining policy and financial information both from the Astute website or FNA system and directly from the product provider. With about 9% of users indicating that they will always request information again from the product providers, to 31% indicating that they will at some time request duplicate information from the product providers. This is something we’ll be scrutinising with a view to reducing the need for duplicate transactions.
On reasons for requesting information from both sources, advisers said their main concern was about the completeness rather than the correctness of information provided through the Astute website or FNA system. There are also a relatively large number of users requesting policy information for record keeping purposes.
Data discrepancies have serious impact
Regarding the impact of data discrepancies on their financial planning process, just over 34% of users rated the influence as significant and serious. This against the background of the FAIS Act and the existence of an industry Ombudsman, which place financial practices under greater regulatory and public scrutiny.
As a result, the importance of data discrepancies should not be underestimated. They require continuous effort on the part of the industry to ensure complete and comprehensive financial analysis services to the market.
Actions from Astute and product providers
To further increase the quality of data to our users, the following actions were identified:
•The client search criteria to be further improved.
•Training remains a high priority for all parties in terms of the download process, but also the interpretation of the data.
•Astute will investigate to make the policy schedule and detail policy information supplied by the product providers, available in a downloadable PDF file for easy filing and printing.
•Where product providers have other product data, which is not available through the normal, download process, a PDF file can be attached by the product provider with all the relevant information. This option is still to be investigated and finalised.
2. TECHNOLOGY AND SUPPORT
A random error 3015 occurs when users process transactions. This has been isolated by our Technology Team, so should you come across this error, please log out and try logging back in after a few minutes and resubmit your request. The particular transaction fails and therefore is not billed for.
Currently certain Liberty requests are failing. The Liberty management is aware of the matter and are working on resolving the issue. In the interim, you are advised to obtain the information directly from Liberty or via the Blueprint website should you come across such an instance.
3. TRAINING
Free Astute training sessions will be conducted in the following areas during August and September 2008, depending on the number of nominations received:
Date Area Time
5-Aug Randburg 10:00 - 13:00
7-Aug Pretoria 10:00 - 13:00
25-Aug Cape Town 10:00 - 13:00
8-Sep Pietermaritzburg 10:00 - 13:00
9-Sep Durban 10:00 –13:00
18-Sep Randburg 10:00 - 13:00
22-Sep Cape Town 10:00 - 13:00
25-Sep Pretoria 10:00 - 13:00
Training consists of the following:
oFunctionalities on the Astute Home Page
oCompliance and Administration
oRequesting and retrieving product information on the Astute website
oInterpreting the Astute screen views
oIntegrating Astute with your FNA system.As we will be explaining how to analyse and interpret information available on Astute, it is important that you have a general knowledge of products in the market.
As a result, you will be issued with a pre-training study guide. If you do not have the necessary knowledge, please complete all of the assignments and bring the completed study guide to the training session.
Nominations close one week before the training date.
Please send your nominations to CPTadmin@astutefse.com
Clearly indicate your name, surname, contact details and the ID number of the registered Astute user, as well as the area where you would like to attend training. The study guide and venue details will be e-mailed to you once we have received your nomination.
4. COMPLIANCE
Monthly Audits
Most of the advisors, registered on the Astute system, are by now aware of the monthly audits that are conducted to confirm possession of valid client consent before accessing the system to obtain policy information on behalf of clients.
The audit letters are e-mailed on the first Monday of each month followed by an SMS message as a reminder. You are then requested to fax the relevant client consent to the Astute Compliance Department within 72 hours (excluding weekends and public holidays).
The main aim of the audits is to convey the message that the confidential information of the client has to be protected and to play an important role within the industry compliance processes.
The non-compliance cases that were investigated as a result of the audits during the last six months by the compliance departments of the various Life Offices have lead to four LOA S-ratings / FSP debarments and six disciplinary hearings.
The monthly audits therefore form a very important part to control the protection of client personal information within the Astute processes.
