Digital advice ‘market leader’ in voluntary administration
Money Management can confirm that Advice Intelligence is in financial difficulty and has entered voluntary administration.
“Advice Intelligence has entered voluntary administration following the decision from their investor, Regal Funds Management (Phil King), opting to withdraw future funding. This decision is founded upon a landscape of high-interest rates, economic uncertainty, and the overall tightness of capital markets,” CEO Jacqui Henderson told Money Management.
“We’ve survived a number of crises, from the Covid pandemic to a skilled labour shortage, however, over the past 7 years, we’ve continued to strive forward with innovation, and with our mission to help support this industry’s transition from the world of paper and analogue, towards a future of digital advice.
“This mission is something I am most passionate about, and it is terribly sad that at this critical juncture, our vision is in jeopardy.’
"Our decision of voluntary administration comes as the company continues to seek financial assistance from a number of parties, however, we have not yet secured the support required.
"I am eternally grateful for the incredible team that has worked endlessly to support a.i.'s vision over the years and hope this is not where our journey ends.”
Advice Intelligence will continue operating the platform to support clients and work closely to keep them updated.
The digital advice group has 38 employees and is led by CEO Jacqui Henderson, who founded the company in 2016. Henderson had been working alongside digital advice innovators lobbying the government for greater adoption of digital advice solutions.
Advice Intelligence recently joined forces Ignition Advice, moneyGPS and fund manager Aberdeen Asset Management (abrdn) to establish the Australian Digital Advice Association (ADAA), aimed at advocating for change in financial advice regulation and improving the delivery of digital advice solutions.
The idea to form a consortium, and work towards formalising an association, was first floated at a Quality of Advice Review (QAR) roundtable several months ago in response to encouragement from both Michelle Levy, the review’s lead, and Financial Services Minister Stephen Jones.
“After collective consultation with Michelle Levy, following a brief audience with the Minister Stephen Jones on the subject of digital advice, it was suggested the four providers come together and formalise a group, with the objective of helping provide the industry and policymakers with a much clearer understanding of digital advice and the various advice business models digital advice supports,” Henderson told ifa on 12 April.
“We also sought to create discourse around how digital advice practice aligns with QAR recommendations to deliver advice within safe parameters.”
On its website, which is still live, Advice Intelligence describes itself as the market leader for Goals-Based Advice technology.
“We simplify the advice process, remove administrative friction, and streamline the boring bits,” the company homepage states.
“We offer our clients an end-to-end financial planning software solution. Through our thoughtful, user-friendly design we offer advisers an interface that is easy to use and implement. We enable enriched and engaged conversations between clients and advisers, so together, they can explore, problem-solve, and build future possibilities together.”
More to come.