Licensees will ‘cease to exist’: GPS Wealth

Speaking on a panel at the 18th Annual Wraps, Platforms and Masterfunds Conference in the Hunter Valley, GPS Wealth managing director Grahame Evans said pressure on the industry from the royal commission and other places has made it difficult to run a licensee business using the current model.

“I’m a believer that licensees as they exist today, in five years’ time will cease to exist,” he said.

Mr Evans said dealer groups should instead look to collaborate with regtech providers to automate compliance requirements. 

“If we train [AI services] enough over the next five years, they’ll be able to do 96 or 97 per cent, and that way we can manage the systems rather than the whole process,” he said.

“People like ourselves at GPS will need to sharpen the tools and services that we actually provide because our only thing that will keep them there is that we’re going to charge them a fee, but they actually want to utilise the services we offer.”