Fin365 Updates & Industry News

How much revenue have you lost due to product provider/dealer group errors?

Most financial planning businesses receive thousands of revenue transactions per year from multiple product providers. Manually tracking and reporting on these transactions is simply not cost effective for most firms and so they must blindly hope a) they are being paid correctly and b) clients are being charged correctly. Unfortunately, that is almost certainly NOT the case.

Based on our experience, commissions errors by product providers and dealer groups are quite common, and almost never in the favour of the financial adviser or client.

As an example, the following errors were found in our own practice from one product provider during a 3 – month duration.

  • 41 erroneous transactions
  • 1 client overcharged by 2x the requested new business advice fee
  • 15 clients undercharged their adviser service fees by up to 15%

How many of your clients have been incorrectly charged?

As well as the obvious direct cost to your business. Such errors pose a compliance risk and can cause significant indirect costs through time wasted finding and correcting them.

FinPal’s financial planning software includes sophisticated revenue management capabilities that reduce the likelihood of errors going unnoticed. Features of the revenue management system, include:

  • Automatic alerts for incorrect new business revenue
  • Web based bulk importing of revenue transactions with automatic record matching
  • Automatic revenue categorisation
  • Business Intelligent report integration
  • Automatic fee disclosure calculations