NextWealth has published a report on Data Openness, as part of our Adviser Tech Stack series.

Inconsistent and poorly structured data is a major contributor to operational inefficiency in financial advice firms.

The back-office system should be the single source of truth, but for most firms, its data is often inconsistent and incomplete. Prior to the use of platforms which introduced automation for execution, advice businesses relied on manual application forms and switch/ stock transfer forms. This leaves large gaps in the data. The problem is particularly acute for consolidators who have bought businesses from retiring advisers.

Good data is imperative for compliance. With the introduction of the RDR, MiFID II and more recently Consumer Duty, advisers must be able to provide evidence of on-going suitability. It is also imperative to smooth running of the business and risk management. Advice firms increasingly want data to pass back and forth from platforms and providers to the back-office system. With platforms and providers all doing things a bit differently, the risk of errors increases. This can lead to errors and increases the cost of delivering advice.

A lack of data standardisation is frustrating for advisers. It hampers their ability to innovate, their efficiency and client experience.

For each objective, we share the steps advisers can take to strengthen their due diligence process.

Methodology

This report draws on research conducted between April-June 2025 to explore the use and availability of data between financial advice firms and providers (specifically, platforms and off-platform providers).

The following are the specific research activities undertaken:

• Survey of 200 financial advisers conducted in May 2025;
• 10 in-depth interviews with technology and operations executives at financial advice firms;
• Additional interviews with providers and firms supporting data integration;
• 15 data requests from financial advice firms on the data they receive from providers.

To download a sample of the report, complete the form on the right.