The industry-led Fix LoA Action Group (FLAG) has reached a major milestone with 64 advice firms, technology providers, platforms, product providers and industry bodies now signed up to support the improvement of Letter of Authority (LoA) processes – just nine months after the initiative launched.

The expansion into protection is being seen as a long-overdue opportunity to bring clarity and efficiency to a sector where policy data is critical but often hard to obtain.

Originally focused on defined contribution pensions, FLAG has worked in partnership with standards body Criterion to deliver the LoA Data Checklist Standard – a common data set designed to reduce delays, cut queries and speed up information sharing between advisers and providers.

Now, in response to strong industry demand, the checklist is being extended to cover investment and protection products.

The expansion marks a significant step in bringing greater consistency and automation to one of the most problematic areas of adviser-client administration.

RIPE FOR AUTOMATION

Nick Green, strategy and proposition director at Criterion, said: “The LoA process is ripe for automation, and agreed data standards will make it faster, cut errors and drive consistency.

“With FLAG members’ support we are updating and extending the checklist, shaped by extensive stakeholder feedback. I look forward to its wider use and better outcomes for providers, advisers and consumers.”

The move is expected to significantly ease the friction often faced by protection advisers when requesting policy information, especially as turnaround times and missing data have long been barriers to seamless advice.

FLAG also publishes a quarterly LoA Performance Index, ranking how the ten highest-volume organisations handle LoA requests – providing a clear benchmark to encourage transparency and ongoing improvement.

CHECKLIST EXPANSION

Justine Pattullo, Chair of FLAG and representative of Pension Lab, added: “Reaching 64 member organisations in under a year shows just how urgently the industry wants to fix LoAs – and a key fix is standardisation.

“Now that Criterion is pushing ahead with the checklist expansion to cover other product types, FLAG’s focus turns to adoption.

“We’re exploring how best to benchmark providers and platforms against the standard, while also tackling complexities like the need for wet or digital signatures.

“With LoA volumes set to rise – potentially eightfold, according to Pension Lab research – we’re also keeping a close eye on the Pensions Dashboard programme.”