What Does Fourth Line do?

For those who may not know what Fourth Line does, let me explain.

The Fourth Line platform enables licensees and advisers to generate a “risk based” report, which some might call an “exceptions report”, based on the analysis of the following documents provided by Financial Advisers:

* Statement of Advice (SOA)
* Fact Find / Risk Profile Tool
* File Notes
* Any other documentation unique to the licensee/adviser used in the advice creation process

The risk flags raised by the Fourth Line reports are based on how well these documents align with an analysis of legislation, regulations, Regulatory Guides, ASIC Reports, and AFCA/FOS Determinations.

Over time, the data generated by these individual reports forms a powerful reservoir of insights regarding how individual advisers formulate the strategies, specific types of advice, and financial products they use as part of their personal advice creation process.

For example, today I spent time with one of our clients talking through some risks which have been consistently flagged, over recent times, across various advisers within their network.

Through our discussion, it became evident that the issue lay in the way the advisers were using the File Note template the licensee had created. The template itself was excellent and designed to engage deeply with the client, however some advisers were not using it effectively.

This created “gaps” in the advice creation process used by the advisers which were then leading to flags being raised by the Fourth Line system.

Outcome – our client is going to run training sessions for the advisers to help them understand the intent of the file note and why it’s important to use it as intended.

This should lead to a reduction in risk flags raised and an improvement in the score for advisers across the group.

Simple issue – Simple solution – Simply beautiful.

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Fourth Line is a rigorous RegTech risk management and compliance system for advice practices, dealer groups and other wealth management participants. Fourth Line uses algorithmic approaches to simplify the complexity in advice reviews whilst maintaining human oversight, empowering compliance teams to coach and develop strong advice behaviors through data driven insights from advanced analytics for adviser, practice/dealer group and industry benchmark comparison with centralised document storage and access to meet regulatory needs. 

For information email: info@fourth-line.com.au