Technology vital in meeting legislative and compliance changes

George Haramis, CEO and founder of accountantsGPS, Greg Hansen, senior business strategy manager for HUB24, and Chris Hill, national account management lead for AUSIEX, said tech platforms are not only used for business growth but are becoming increasingly vital to managing compliance for SMSFs.

Mr Haramis said the implications of incorporating technology into a financial services business are becoming even more relevant given the recent proposal that SMSFs be included under the Retirement Income Covenant.

“That is potentially a huge move in the industry, because accountants do not have the resources large super funds have and could get lost in the compliance issues around that,” he said.

“The technology available now allows accountants to have a helicopter view of a fund and help advisers get involved in decision making without spending hours analysing data.”

Mr Hansen added that using the right technology, or combination of technologies, can allow advisers to understand exactly what is going on in individual funds to help trustees construct an appropriate retirement income strategy.

The proposed $3 million super cap is another area in which technology will be able to provide support for financial service providers.

Mr Haramis said that accountantsGPS’ SMSF Check Up tool has been upgraded to include the relevant requirements of the new legislation and will be able to provide factual reports about how funds should manage things like asset composition and contributions to realise the best tax outcomes.

“Using the BGL simple fund 360 platform the SMSF Check up will develop a factual document that allows the accountant and the adviser to look at the makeup of the fund in a strategic sense,” he said.

“It will look at things like asset allocation or aspects of a fund’s performance returns, and different contribution strategies.”

Tech platforms also serve as one of the most effective means for accountants and advisers to connect with younger clients. This is particularly crucial given the predictions from the Intergenerational Report earlier this year, highlighting Australia's impending major transfer of generational wealth.

Mr Hill said having the right technology in place is important for providers to ensure they can offer advice to the younger generations inheriting that wealth.

“Technology can help you do that in a cost-effective manner,” he said.

“Although those inheriting the wealth may not choose to see the same planner, or see a planner at all, if you have an offering that can leverage the data available to them, it gives the adviser longevity for the future.”

Mr Hansen added that the only way advisers can stay connected with the next generation of investors successfully is by utilising the technology that is currently available.

“Millennials and Gen Z are not just going to inherit a lot of that wealth but they're also now creating wealth in their own right and they’re very concerned about responsible investing,” he said.

“They're engaged with their finances, including their superannuation, and want it to be invested in a way that reflects their personal preferences and values which is difficult to do in a large, hyper-regulated superfund.

“What we're seeing is a great demand for more control over their investments to allow for that reflection of their personal values and preferences, which is leading people down the path of self-managed super funds.”

He added that technology also plays a pivotal role in simplifying processes and enhancing security.

“Cybersecurity is something that is now absolutely critical and top of mind from a financial professional’s perspective,” he said.

“And technology has a solution for that in things like a secure client portal which can store the important documents for accounting, financial planning or estate planning, to insurance or medical and marriage certificates.”

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