Further convergence of accounting and wealth predicted
The publicly-listed company which last year acquired GPS Wealth is pointing to the further convergence of accounting and wealth management in Australia.
Easton Investments Limited managing director, Greg Hayes has pointed to the continuing convergence in the company’s full-year results delivered to the Australian Securities Exchange (ASX) including a 20 per cent increase in net profit after tax to $1.77 million on the back of a 195 per cent increase in revenue to $50.79 million.
He said the company’s acquisition of GPS Wealth had created critical scale allowing the company’s Wealth Solutions division to provide a compelling offer to both advisers and accountants and that there was now a clear focus on the convergence of accounting and wealth in Australia.
Hayes said that with the completion of the GPS Wealth acquisition, there had been strong growth in adviser numbers to 574 with another 53 in transition and that the company was now a top 10 advisory group in Australia by adviser numbers.
He said the company also had over 400 accountants under limited authorisation – one of the largest such cohorts in Australia.
Hayes’ results presentation said that the limited authorisation approach represented a pathway for accountants into wealth advice.
Looking over the horizon, Hayes said the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry was likely to result in systemic change in the sector, with the education and training requirements under the Financial Adviser Standards and Ethics Authority regime changing the adviser landscape.
He said technology would continue to disrupt but also enable while succession within the accounting and advice professions would promote convergence.
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