Technology key to handling FOFA changes
Financial planning dealer groups will need to embrace technology driven advice models in the new post Future of Financial Advice (FOFA) world, according to the ANZ Wealth general manager of advice and distribution, Paul Barrett.
Speaking at the Financial Services Council annual conference on the Gold Coast, Barrett suggested one of the key initiatives for planning groups would be the establishment of phone based advice centres — something that could not only assist with the provision of scaled advice, but also with handling the challenges presented by opt-in.
Dealership services have to move from the bland to the next generation in technology,” he said.
Earlier, Count Financial chief executive Andrew Gale warned that opt-in would increase the cost of advice, and unless scalable advice, was appropriately implemented there was a risk that middle Australia would be disenfranchised.
Gale said that the FOFA changes were riddled with unintended consequences, including inadvertently empowering the vertically integrated institutions at the expense of medium sized players.
As well, he said that it would lead to a tightening of Approved Product Lists as dealer groups sought to minimise their risk exposures.
AUTHOR
Mike Taylor
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