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.
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