Licensee Entireti has partnered with digital advice provider Otivo, citing the social and moral obligation to improve advice accessibility.
The partnership will see Otivo develop a simplified and integrated advice platform covering episodic and limited scope advice and enable consumers to move along the advice continuum as their personal needs change over time.
Entireti, which became the largest licensee by adviser numbers after acquiring the AMP advice network last year, specialises in comprehensive advice; the deal with Otivo will allow advisers in the network to help service clients with a lower balance which advisers don’t have the capacity to serve.
Entireti group chief executive Neil Younger said the advice industry has a social and moral obligation to make quality advice accessible and affordable to more Australians, acknowledging cost remains the biggest inhibitor.
“Advisers have the answers and guidance that people need and want but advice is currently out of reach for the average Australian, which is why Entireti is highly supportive of reforms that encourage and foster the development of new and innovative advice models, including scaled, episodic and digital advice,” Younger said in a media release.
Research from Adviser Ratings found advisers need to charge upwards of $4000 in annual fees to remain viable, highlighting the need to rely on lower cost options to serve lower–balance clients.
Otivo, which has its own AFSL, offers digital advice covering super investment advice, personal insurance, contributions, and debt, and can generate Statements of Advice.
The digital advice provider has won key mandates in the past year, locking in retail platform provider Colonial First State and industry fund NESS Super.
The partnership with CFS meant the platform provider could facilitate the delivery of personalised digital advice to FirstChoice platform members who do not currently have a financial adviser.
Otivo had designed the advice tool specifically for CFS members, which would provide personalised digital advice in relation to their CFS FirstChoice investment options, contribution strategies and insurance arrangements, at a cost of $88 a year deducted from their super accounts.
As part of the NESS Super/Otivo agreement, members could receive advice related to personalised recommendations to optimise their super investments as well as contribution advice with personalised tailored strategies, like salary sacrifice and lump sum payments, and personal insurance advice.
