The traditional dealer group model will disappear in the next five years and licensees will need to rethink their service offering, according to GPS Wealth.
Speaking on a panel at the 18th Annual Wraps, Platforms and Masterfunds Conference in the Hunter Valley, GPS Wealth managing director Grahame Evans said pressure on the industry from the royal commission and other places has made it difficult to run a licensee business using the current model.
“I’m a believer that licensees as they exist today, in five years’ time will cease to exist,” he said.
Mr Evans said dealer groups should instead look to collaborate with regtech providers to automate compliance requirements.
“If we train [AI services] enough over the next five years, they’ll be able to do 96 or 97 per cent, and that way we can manage the systems rather than the whole process,” he said.
“People like ourselves at GPS will need to sharpen the tools and services that we actually provide because our only thing that will keep them there is that we’re going to charge them a fee, but they actually want to utilise the services we offer.”
The shadow treasurer says advisers can’t be blamed for the high cost of advice as they struggle with increased levies ...
The advice network says it has upgraded its expectation for cost savings to $4 million as a result of Diverger’s ...
Single adviser-led firms continue to expand their footprint in the Australian advice ecosystem, Adviser Ratings research ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin