Criterion has developed its new Letter of Authority (LoA) Data Checklist, aiming to support financial advisers and drive industry innovation.

The financial services data and process standards organisation said the checklist was a “significant step” to fixing long-standing inefficiencies.

Its LoA Data Checklist is a standard that Criterion has tailored to the needs of advice and compliance practitioners.

Formatted as a spreadsheet, the checklist seeks to simplify and streamline the LoA process, enabling advisers to make standard data requests to drive operational efficiency.

Criterion developed the checklist as a result of the Fix LoA Action Group (FLAG).

The group found that standards were “pivotal” to solving the challenges of LoA processing and improving efficiency, as well a driving innovation and fostering a more competitive market for LoA solutions.

Criterion described LoAs as one of the biggest administrative burdens in the industry, costing around £442m every year, adding that advisers were facing delays of 60 days, inconsistent data, and ‘unnecessary’ back-and-forth communications when retrieving information about their clients’ plans.

The checklist for defined contribution pensions was created from Criterion’s existing LoA integration standards.

It said that the LoA Data Checklist would enable advisers to set out the information they need and expect in response to the LoA in a standardised way.

All financial advisers have been invited by Criterion to download and review the checklist, which is free, and encouraged to share their feedback to strengthen the push for standardised LoA practices across the industry.

“For too long, financial advisers have had to tackle the inefficiencies of the LoA process, and it's time for real change,” said Criterion strategy director, Nick Green.

“Providers should prioritise the adoption of LoA Standards to eliminate delays and inconsistencies that hinder advisers and their clients.

“By using this Data Checklist and advocating for standardised practices, advisers can put pressure on providers to implement automation.

“The industry must move towards a more streamlined, adviser-friendly approach—this is a critical step in making that happen.”

Pension Lab consultant and FLAG chair, Justine Pattullo, commented: "We are proud of the progress made since establishing the FLAG, but this is just the beginning.

“Meaningful change requires more organisations to join FLAG and for advisers to actively engage with the LoA Data Checklist. Adviser feedback is crucial in driving industry-wide adoption of Criterion’s LoA Standards.

“If we can get more advisers using standards, it helps push the case for providers to automate processes, reduces costs and frustrations, and ultimately creates a smoother, more positive experience for consumers."

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