PIMFA, the trade association for the wealth management, investment services and the investment and financial advice industry, and its tech arm, PIMFA WealthTech, together with Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, launched the Duty of Care Tech Challenge to bring together the FinTech and Wealth Management sectors.
With a focus on customer centricity through Consumer Duty, there is a greater need for Wealth Managers to provide customers with more control and personalisation. One aspect of Consumer Duty is focused on consumer understanding. The consumer understanding outcome rules retain the obligation for firms to communicate information in a way which is clear, fair and not misleading. FinTechs are invited to provide technological solutions for Wealth Managers to navigate these rules and help their clients.
Morningstar is the principal strategic partner to PIMFA WealthTech and together, they are collaborating on a series of ‘Tech Sprints’ which have been designed to address common issues within the wealth management sector where a technology solution could offer the most effective solution for all parties. 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. For the challenge, Morningstar will provide participating FinTechs with access to Morningstar Portfolio Analysis APIs covering asset allocation, geographic breakdowns, sector breakdowns, ESG metrics, risk scores, goal analysis and costs.
Keith Phillips, Executive Director of PIMFA WealthTech, commented: “The Consumer Duty is a step change for the wealth management and advice sector and one that the Financial Conduct Authority (FCA) itself has warned firms they must take very seriously.
“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.”
Anastasia Georgiou, Director of Client Solutions, Advisor Segment, EMEA, Morningstar, commented: “We are proud to collaborate with PIMFA WealthTech to help introduce new technology solutions from FinTechs to the Wealth Management sector.”
“With the Consumer Duty deadline fast approaching, these solutions could be pivotal to helping the industry find new, innovative ways of communicating with customers to help them understand financial products and services. Along with PIMFA, Morningstar is proud to help spearhead new innovations in this space.”
PIMFA WealthTech has been created to specifically address digital business transformation through the development and adoption of market-leading technologies. As a digital marketplace and industry network, PIMFA WealthTech’s objective is to drive innovation and enhance collaboration between FinTechs (WealthTechs) and wealth management firms by creating environments which facilitate innovation and connectivity. PIMFA WealthTech operates an Advisory Council comprising 21 leading wealth management and financial advisory firms covering all segments of the UK wealth management sector.
FinTechs active in this area are invited to participate in the Duty of Care Tech Challenge and demonstrate how their respective technologies can make a difference to client engagement and understanding. PIMFA WealthTech are seeking high growth, market innovating scale-up firms who are typically post Seed/Series A funding. The companies should be enterprise-ready with a demonstrable minimum viable product and, ideally, already engaged with the financial services sector, although this is not essential.
Participating FinTechs will need to demonstrate how Morningstar data can be incorporated within their respective solutions using the APIs. As well as being recognised as a ‘Tech Sprint Innovator’ in PIMFA WealthTech communications, participating FinTechs will also have the opportunity to showcase their solutions to the industry at various industry events and briefings. A briefing session for chosen FinTechs will be held towards the end of May and FinTechs will be invited to showcase their solutions at a final Morningstar industry event on 4th July.
If you are a FinTech which fits the criteria and can demonstrate to wealth managers how your technology can benefit clients with the use of Morningstar data, please complete the registration form here for more information. Registrations are open now and will close on Friday 19 May 2023 at 5pm.
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About PIMFA WealthTech
PIMFA WealthTech is part of the Personal Investment Management & Financial Advice Association (PIMFA), the trade association for the wealth management, investment services and the investment and financial advice industry, spanning 13,000 regulated firms that collectively manage the interests of almost £1.7trillion.
It believes that collaboration is essential to solving industry challenges and brings together senior industry decision-makers to address the most important and complex questions concerning technology focus, partnering and adoption as it applies across the value chain.
Our market network and technology platform has been created to bring the most innovative and relevant WealthTechs to our sector. Our teams work alongside leading financial institutions to identify, prototype and deliver enhancing technologies and breakthrough solutions that generate competitive advantage and business impact.
About PIMFA
About PIMFA – the Personal Investment Management & Financial Advice Association
- PIMFA is the trade association for firms that provide wealth management, investment services and the investment and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
- The sector currently looks after £1.7trillion in private savings and investments and employs over 63,000 people.
- PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families to charities and pension funds, all the way to trusts and companies. Associate members provide professional services to the PIMFA community.
- PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
- PIMFA has made numerous recommendations to the FCA regarding the Future of Advice, the Future of Supervision and the FSCS levy – read more.
- PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
- Further information can be found at pimfa.co.uk
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, and institutional investors in the debt and private capital markets. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $249 billion in assets under advisement and management as of Mar. 31, 2023. The Company operates through wholly- or majority-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on Twitter @MorningstarInc.
