Scaled advice providers to tweak their web-based offering
Early adopters of scaled advice technologies and services may have to rethink their offering as the Future of Financial Advice reforms move closer to the start date, according to Provisio Technologies director Cameron O'Sullivan.
As more light is shed on the final make-up of the best interest duty, he said some large superannuation funds - particularly industry super funds - may have to reconsider the compliance level of their web-based scaled advice offerings.
When an adviser recommends that a client contribute more to superannuation, for example, current policy states that an adviser is required to consider the client's level of debt, he said.
"One of the benefits of scaled advice was that you just had to focus on their super fund - if all of a sudden you have to know a lot more about their personal finances, you're starting to get dragged down doing a more comprehensive plan," he said.
He said more clarity was needed from government around the specific boundaries in place for delivering advice via the web and the implications it may have in meeting the best interest test.
AUTHOR
Staff Writer
Recommended for you
Australia’s largest licensee has seen the biggest number of adviser losses over the past week, while the expected wave of new entrants has boosted overall adviser numbers.
Iress has increased its forecast adjusted EBITDA by $5 million for the 2023/24 financial year in light of the sale of its platform business to Praemium and hinted at a return to dividend payments.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
New Insignia Financial CEO Scott Hartley has detailed the impact of the Godfrey Pembroke exit and the progress in resetting its financial advice model on its latest quarterly results.
