Alexander Euvrard

Self-licensing specialist My Dealer Services (MDS) has welcomed the prospect of industry change under the returned Labor Government but says potential dangers need to be managed beside positive potential regulatory developments.

Speaking at MDS’ inaugural One Day Event for its members at the Fullerton Hotel in Sydney yesterday, Director and Founder, Alexander Euvrard said that after waiting many years since the Hayne Royal Commission for meaningful change he was excited about the way decisions on DBFO and QAR reforms had the potential to lead to new business models and competitive offerings for advisers.

At the same time changing technology and specifically AI was having a seismic impact on the delivery of advice and the industry’s ability to provide, lower cost, tech-heavy advice models that could serve more clients – as well as the currently unadvised – and would enable clients to dictate how they want to be served through episodic advice.

Mr Euvrard said he believed the industry could avoid repeating the mistakes of the past if regulators put in place careful guard rails before allowing large superannuation funds to provide financial advice to members and the immediate challenge of increasing qualified adviser numbers was given the critical focus it deserved.

“We can’t ignore the potential role of, and the possible dangers within, industry super fund advice models over the next five years. I do want to say simple advice done well and accessed by Australians needing it is a game changer.

“These are people who largely do not fit into our business models but absolutely need the access to advice. For those that may be younger, having access to simple advice is actually going to benefit all of us as they will be exposed to the value it creates and be our clients of the future.

“However, allowing lesser qualified advisers to provide this advice at probably the most important time in a client’s life is dangerous and this is without mentioning the dangers of life income products and locking clients in,” Mr Euvrard said.

He added that the only way to increase numbers within the advice profession – now at an all-time low of around 15,000 – was to reduce the red tape around entry level education requirements and remove the policy brick wall that made it difficult for people with tertiary qualifications to transition to advice from any other industry.

“The biggest challenge facing advice practices that we see and hear about every day is the lack of advisers to help grow and support these businesses. It all comes back to making the profession attractive to new entrants and making it achievable to enter,” he said.

Apart from Mr Euvrard, the other event keynote speaker was AMP Deputy Chief Economist Diana Mousina. The event also included speakers from HUB24, Morningstar, Intelliflo, Cordis Asset Management, Financial Adviser Scale Squad, RetireMap, ASO Wealth, Peloton Partners, Briefcase and The Cyber Collective.

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