2020 started with fires, and 2021 could potentially start the same way. Along with these fires, IOOF’s licensee groups were also given Fixed Term Service Agreements to implement into their practices (see my article here). Interestingly, the humble RoA document is one of the key components to these agreements being reconciled.
As the layers of the compliance safety net have increased over time, it has led to the ballooning of both SoAs and RoAs. When you need to spend more time on something, it also means spending more time in trying to ‘get it right’. As we all know already, time is becoming as scarce as gold for advisers – or Bitcoin depending on your view on which is truly more scarce.
In a perfect world, the completion of a client’s review will lead to workflows that look something like this:
- Updating the Fact Find Wizard
- Lodging any forms (including the FTSA)
- Completing the File Note and RoA
- Ensuring that Xplan cases are complete
But the reality is that most review end up with close to 70% of the above being completed on the day, with a mad dash to make sure that all pieces of the puzzle are finalised.
The RoA is such a simple item – but it is often overlooked and can become a fire starter as we step into 2021. As you may already know, any item that is in your FTSA must be accounted for. This is fine for things like portfolio reviews or Centrelink as there will be documents to quantify these services – but for things like cashflow (could be part of the review discussion), it will more than likely need to be noted in the RoA (along with confirmation that the review has taken place).
But why is the RoA a potential fire starter? The fact is that you can have 70% of the required supplementary documents uploaded – but if your busy schedule made you miss the RoA, then you could be paying up to 100% as a refund for the previous year (depending on how you structure your agreements and fees). On top of this, you might also need to turn off the fee and have the client come in and go through the review process again.
At Planlogic, we have a simple system to deliver the RoA. We can also ensure that Xplan is up to date and have any associated cases completed correctly. If you already have a system or process in place, we can complement this – having a second set of skilled eyes is always valuable to any business. If you don’t have a process, ours is tested and can easily be implemented.