Many financial advisers are abandoning traditional administration and asset allocation platforms in order to comply with FOFA’s best interests duty, says Wealth02.
In a statement, WealthO2 managing director Shannon Bernasconi said advisers are increasingly seeking out new, unconflicted ways to manage their asset allocation and administration practices to better meet the FOFA best interests duty.
“Technology and ethics are converging, enabling the best interests of both clients and advisers in a symbiotic manner,” Ms Bernasconi said.
“For instance, greater automation and new approaches to administration can lower the cost of advice and remove remaining conflicts of interest.”
Advisers are “weary” of traditional methods of managing their practices, Ms Bernasconi said, and that this could be seen in the rapid growth of WealthO2, whose funds under management doubled between June and October 2017.
Ms Bernasconi said this growth indicated there’s a “strong network of like-minded advisers” looking for new ways to meet their best interests duty obligations.
“It’s very exciting to have the support of the adviser community and, in turn, help them to deliver better value advice to more Australians,” she said.
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