Digital advice firm confirms voluntary administration

In an email to ifa on Thursday, Advice Intelligence confirmed it has entered voluntary administration following the decision from its investor, Regal Funds Management, opting to withdraw future funding.

This decision, the firm confirmed, is founded upon a landscape of high-interest rates, economic uncertainty, and the overall tightness of capital markets.

CEO Jacqui Henderson explained that the decision comes as the company “continues to seek financial assistance from a number of parties".

“However, we have not yet secured the support required,” she said.

“We’ve survived a number of crises, from the COVID pandemic to a skilled labour shortage, however, over the past 7 years, we’ve continued to strive forward with innovation, and with our mission to help support this industry’s transition from the world of paper and analogue, towards a future of digital advice.

“This mission is something I am most passionate about, and it is terribly sad that at this critical juncture, our vision is in jeopardy.”

Ms Henderson added that Advice Intelligence will continue operating the platform to support clients and will work closely to keep them updated.

Last month, ifa learnt fund manager abrdn and three fintech firms – Ignition Advice, moneyGPS, and Advice Intelligence – are establishing the Australian Digital Advice Association (ADAA), aimed at advocating for change in financial advice regulation and improving the delivery of digital advice solutions.

The idea to form a consortium and work towards formalising an association was first floated at a Quality of Advice Review (QAR) roundtable several months ago in response to encouragement from both Michelle Levy, the review’s lead, and Financial Services Minister Stephen Jones.

ifa also learnt Minister Jones’s office was specifically interested in establishing a visible industry touchpoint with expertise in digital advice, with which it could interact as it tackled related policy.

A source has told ifa that the digital advice association is expected to proceed.

More to come.