ASIC lays out robo-advice rules for financial services
The corporate watchdog has published its guidelines for financial services companies offering so-called robo-advice in the burgeoning automated advice sector. The Australian Securities and Investments Commission has laid out what constitutes personal advice as opposed to general advice to clarify when an Australian financial services (AFS) licence is required by companies providing automated advice using algorithms. Five months after issuing its draft guidelines, ASIC also highlighted the need for rigorous testing of the algorithms used to provide recommendations through a website or app where users seek tailored financial advice. ASIC said that, with only about 20 per cent of adult Australians seeking personal advice, digital advice has the potential to […]
InvestSMART records profit surge as investors flock to robo advice
InvestSMART Group Ltd (ASX: INV), Australia’s largest provider of automated investment advice to retail clients and self-managed super funds, today announced its profit had surged in the year to June 30, 2016 as the group expanded its range of robo advice tools and content services. In a year that was focused on business consolidation, cost restructure and systems development to improve scalability, InvestSMART’s operating profit before tax and amortisation jumped from $131,204 to $2.41 million. The result, and the focus on improving services to members, set the scene for organic growth in member engagement and revenue in FY2017 as the numbers of investors turning to the group’s sophisticated robo advice […]
IFAs and accountants seek out robo-advice
Stockspot, Australia’s leading automated investment adviser, has launched its partners programme for advisers, accountants and other professionals. The programme will allow selected financial professionals to partner with Stockspot for their clients. Stockspot will managethe client’s portfolio including all advice, investing, compliance, rebalancing and tax reporting. The IFA or accountant has full visibility of their clients’ portfolios via an online investment dashboard and receives updates on the strategy and client’s financial profile. Stockspot also simplifies tax reporting via its recently announced integration with Class Super. Stockspot CEO and founder, Chris Brycki said: “In the last 12 months, with the increased spotlight on the robo-advice industry in Australia, we’ve had a lot […]
Australia recognised for embracing fintech startups
Australia is establishing hubs and improving business conditions for fintechs. Despite tough market conditions and a global drop in investments, Australia has been praised as a forward-thinking, cultivator of venture-capital (VC) backed fintech startups. KPMG and CB Insights analysed the global status and outlook of fintech venture funding in their Pulse of Fintech Q2 2016 report and found VC-backed fintech companies raised $2.5 billion through 195 deals, a 12% decline in volume compared with Q1 2016. However, funding is on pace to exceed 2015 investment levels. The report says that while some jurisdictions are fighting to advance regulatory changes related to fintech, Australia is establishing hubs and improving conditions for […]
The Pulse of Fintech
‘ The Pulse of Fintech ’ is a quarterly report created by KPMG along with KPMG Enterprise’s Global Network for Innovative Startups and CB Insights (the ‘go to’ name for insights related to venture capital investment) which launched on August 17th, 2016. The series analyses the latest global trends in venture capital investment data on the fintech sector. Given the significant interest in fintech globally, and its ongoing evolution in terms of market drivers, technologies and potential use-cases, KPMG and CB Insights are partnering to bring you the pulse on fintech investment globally. Each quarter, we’ll highlight key fintech deals, issues and challenges around the world, in addition to key […]
Barry Lambert backs robo-adviser Ignition Wealth
Financial planning pioneer and Australia’s 167th richest person Barry Lambert has taken another leap into the future, pairing his chairmanship of cloud-based self-managed super administrator Class with a $1 million stake in digitally led adviser Ignition Wealth. Class, which Lambert has chaired for eight years, on Tuesday announced a 71 per cent rise in net profit for the year ended June 30 to $5.83 million. Its Class Super product now administers more than 19 per cent of Australia’s 576,000 self-managed super funds. Ignition Wealth, launched in 2008 as a pure robo-adviser called Advice Connect, is also gaining traction since in February 2015 becoming the first digitally led adviser to be […]
Money for nothing, cheques for free in the sharing economy
THE bank of mum and dad is receiving a welcome cash injection as a growing number of households put a price on the things they previously gave away for free. More households are renting out a spare room, car sharing, selling goods and services and even lending to each other as the “sharing economy’’ expands, research shows. According to polling by RateSetter, some households are earning up to $120 a month. On the downside, however, all those people who benefited from the “free economy” are now having to wait their turn, or pay for it. Free rides, spare rooms, and even the kids’ old books and toys are increasingly thin […]
BPS Technology acquires Entertainment Publications
Leading channel enablement and payments platform provider BPS Technology Limited (“BPS”, “BPS Technology” or “the Company”) is pleased to announce the successful completion of its underwritten $27.5 million institutional placement. Net proceeds of the capital raising will be used to fund the transformative acquisition of Entertainment Publications Australia and New Zealand (“Entertainment” or “Entertainment Publications”), a leading B2C deals platform with 12,000 SMEs, 18,000 NFPs and 550,000 members, and for additional growth/working capital. The consideration for the Entertainment Publications acquisition is $22.5 million in cash and 2,659,574 in BPS shares. The combination of BPS and Entertainment brings together two proven, profitable and scalable businesses with significant growth potential. […]
