Last week we asked if advisers plan to increase their use of third-party firms to handle the admin and back-office work for their business.
In a relatively even outcome, 48% of those voting in our poll are looking to increase their use of these services this year. However, 41% have no plans to use these services more than they currently do, while 10% remain unsure.
One conclusion that may be drawn is that firms providing back-office documentation, compliance, audits and processing reminders are potentially in for a boom time as almost half of all advisers look to hand over this work.
These firms looking to outsource appear to see the value in being freed-up to spend more time with customers, having more time to generate new business, or perhaps increasing their work-life balance.
Last week we noted that some of the changes advisers may need to contend with include:
- Transitional licensing for financial advice providers
- Implementation of the Financial Services Legislation Amendment Act 2019 (FSLAA)
- Implementation of the Code of Professional Conduct for advisers
- Minimum education standards
- Updated disclosure requirements
While there are clear benefits of using admin service firms, there is a cost – which may deter some advisers from using them. But as the pressure builds to meet the regulations some of those in the ‘no’ category may reconsider their options.
We welcome your thoughts as our poll remains open for another week…