The rise of non-institutional financial advice and investment platform businesses will continue into the New Year, Hub24 has predicted in a new market overview.
The ASX-listed platform provider has released a document presenting its outlook for the “wealth management advice business in 2018”, making predictions based on prominent trends in 2017.
“We’re seeing the transformation of the existing wealth management advice model,” said Hub24 managing director Andrew Alcock.
“Overall, 2018 looks like a good year for advisers, as platforms and their continued technology improvements helps them better deliver advice to their clients.”
Mr Alcock said he expects the institutions to further broaden their approved product lists, following a number of revelations by ifa of the number of insurers on various subsidiary APLs.
The major players are currently re-assessing their business models to ensure compliance with the FOFA best interests duty, the overview suggests, adding there may be implications for technology providers.
“Advice arms of institutions are having to come to terms with their obligations under the best interest test and that’s putting tension on the traditional way they’ve operated,” Mr Alcock said. “This is challenging the status quo and forcing them to think about their models.”
The number of investment platform and financial product choices available to institutionally-aligned advisers is likely to rise, he said.
Significant growth in the IFA and non-aligned market has been supported by the emergence of innovative technology tailored to their needs, the document states.
“Non-insto advisers, brokers and accountants are increasingly leveraging new technology to improve client engagement, increase efficiency and reduce costs,” Mr Alcock said.
“They seek to integrate data and reporting functions for improved user experience and back-office efficiency.”
The company is looking to expand its services for financial advisers.
The FPA has developed a new SOA video toolkit to guide members.
“All advice should be regulated in a similar way”, a financial services firm has argued in its QAR submission.
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