Industry Fund Services (IFS) is launching a trial of its Independent Adviser Licensing Model to help bridge the advice gap through industry super and adviser collaboration.
The super fund advice licensee has unveiled this “groundbreaking initiative” as a comprehensive solution aimed at helping independent financial advisers that want to specialise in delivering advice to industry super fund members targeting their unique advice needs.
With Australia’s ageing population meaning there will be more than 2.5 million people reaching retirement age within the next 10 years, according to Treasury’s 2023 Retirement phase of superannuation discussion paper, the current advice gap will see many enter the next stage of life without the proper guidance.
As it stands, there were just 15,145 individuals on the Financial Adviser Register (FAR) as of 15 January, according to Padua Wealth Data. As a result, the existing advisers are spread fairly thin as they try to keep up with the high demand for service which, among other factors, has driven up the cost of advice making it even less accessible for many who need it.
IFS said their licensing solution is a step toward closing the advice gap, while also improving Australians’ access to the necessary adviser services to help build a secure financial future, though it also noted that it isn’t intended to “displace or compete with existing super fund referral arrangements”.
According to IFS, the Independent Adviser Licensing Model offers five key benefits for advisers:
- Aligned advice delivery: Provide guidance that meets members’ priorities and super fund expectations.
- Efficient service/operating model: Leverage IFS’ technology platform to make serving super fund members profitable and scalable.
- Trusted AFSL framework: Operate confidently with strong compliance support.
- Specialised training and tools: Access resources designed for industry super advice.
- Referral opportunities: Benefits from partnerships with leading industry super funds.
Although the official launch data is not yet known, it will offer 20 licensed spots as part of its initial rollout phase in the coming months.
IFS executive manager of advice services Adrian Gervasoni suggested there is often a misalignment between standard advice offerings and what super fund members want, a challenge the new offering is designed to address.
“However, many advisers find it challenging to adapt their traditional advice models to meet these expectations profitably and compliantly. IFS’ new licensing solution bridges this gap by enabling independent advisers to deliver tailored advice under a trusted AFSL framework, supported by an efficient technology platform, robust compliance and training resources.”
