Self-licensing specialist My Dealer Services (MDS) is predicting strong growth next year as advisers seek greater control over business decisions while looking to avoid the risks of a big AFSL.
Last month, ASIC launched legal action against Interprac Financial Planning over alleged failures related to the Shield and First Guardian fund collapses.
As a result of this high-profile case, MDS suggested that more advisers may turn to self-licensing as they “come to understand the associative risk of working under large licensees”.
MDS managing director Alex Euvrard suggested that recent events have made some advisers weary of the possible ramifications if their licensee were to become involved in a similar event.
Euvrard noted that some platform providers have refused to take on new clients from advisers under Interprac, signalling potential limitations for those who operate with AFSLs undergoing scrutiny and further fuelling growth in the self-licensing sector.
“MDS has already received a number of approaches from advisers wanting more control over their own destiny. Advisers like self-licensing as a way to control their business and make their own choices about how they treat their clients and where they place their money without the scrutiny of a parent licensee and being dictated to by templates,” Euvrard said.
Speaking with Money Management earlier this month, Euvrard said the high-profile case is highly likely to persuade more advisers to consider going self-licensed next year in order to avoid negative brand association.
He added: “Licensing is a broken system and doesn’t work.”
Where larger AFSLs have traditionally found their appeal by offering access to crucial software, compliance and investment and practice management solutions, Euvrard said association with Interprac has actually seen some platform providers refuse to take on clients from advisers under the licensee.
Meanwhile, advances in technology have made it much easier for self-licensed firms to access this on their own.
On top of growing its service offerings by 20 per cent in 2025, MDS head of strategy Ashely Mahadeea said the firm also expanded its suite of supplier partnerships, welcoming Morningstar, HUB24, Lonsec and intelliflo, reflecting its commitment to MDS members.
“In 2026 we will continue to provide hands on compliance solutions for our members, increase our advocacy work to explain the benefits of self-licensing and uplift our internal technology to create more efficiency for the business and our members,” Mahadeea said.
As the profession prepares for potentially significant losses in the next few weeks, Euvrard said MDS has been actively supporting its members through this as well.
“Despite up to 15 per cent of the industry forecast to potentially depart at the end of the year because of the introduction of two pathways to remain on the Financial Adviser Register (FAR), we are proud that we have already managed to shepherd all of our more than 400 adviser members through the rigours of the new requirements,” he said.
