With the education reforms passing Parliament recently, advisers seeking technological solutions to meet the new standards may prompt the emergence of ‘EdTech’, predicts financial planning software provider Adviser Intelligence.
In a recent blog post, Adviser Intelligence chief executive Jacqui Henderson said the most disruptive force in the financial services sector is regulation imposed by government.
The Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016 passed Parliament last month, mandating compulsory education requirements for both new and existing financial advisers.
Ms Henderson believes the new legislation may open a new door in the technology space.
“With higher education standards now a formative part of the advice sector, should we also expect the emergence of ‘EdTech’ as the newest offshoot on the horizon?” she said.
“After all, if RegTech is the new FinTech, it would follow that higher education and ongoing training may certainly shape – or at least complement – the face of financial advice technology in Australia.”
Ms Henderson added that while re-regulation has been the norm in the industry sometime, it never gets easier for advisers to adjust to new compliance regimes.
“In the face of such a relentless regulatory offensive, financial advisory firms will inevitably seek technological solutions to ease the compliance burden,” she said.
“Fortunately, today’s technology affords advisers more scope than ever to seamlessly adapt their businesses to new regulations rather than patch over historical compliance gaps.
“Based on current projections, financial advisers have more than four days but less than four years to be RegTech ready for the new regime. Whether we see some form or supporting ‘educational tech’ emerge remains to be seen.”
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