An increase in new SOA tools for scaled advice reflects the uptake of automated advice tools by unlicensed accountants looking to continue providing SMSF advice, according to Investment Trends.
For the first time, in 2016 the number of new client scaled advice SOAs was larger than the number of comprehensive SOAs.
Investment Trends’ lead technology analyst Ian Webster believes this shift is tied to changes in the financial planning industry, including FOFA reforms and the introduction of new fintech players.
“The thing that has driven the development of technology tools for anyone who is in the wealth management industry in order to manage compliance,” Mr Webster said.
“If you’re an accountant and you do decide not to be licensed, and you want to offer advice to establish an SMSF, there are a number of automated tools you can use in order to generate an SOA that will enable you to provide advice on whether someone should establish an SMSF.”
The rise in compliance automation will continue to grow, with new fintech developers aiming to disrupt the comprehensive advice model and split it into smaller pieces of advice, according to Mr Webster.
“When you think about it, most people have ongoing advice needs at different times and different places, so people in the planning and wealth management business are being given the tools to deliver those kinds of professional services for their clients rather than having to go through the whole comprehensive advice process that they used to have to do,” he said.
“This is really about helping people automate this kind of single issue functions in this area.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all