Addressing the Financial Services Council conference in Brisbane yesterday, ANZ managing director for global advice and distribution, Paul Barrett, said by the time the first client opts in in 2015, "opt-in will be the least of our worries".
The industry cannot afford to be distracted by regulation because there is a risk online technology could present an alternative to seeking face-to-face advice for many consumers, he said, in the same way that it is currently threatening the higher education sector.
"One of the dangers of the current regulatory regime is it is focused on the short term, with fee disclosure statements, opt-in, best interest and scaled advice. We really need to be discussing consumerism and technology," Mr Barrett said.
Technological advancements carry "massive implications" for the future of providing financial advice, he added.
"No one will own these clients," he said. "No award or superannuation entitlement will make a difference to the ownership of these clients."
It also will not matter which bank holds their account, and no amount of independence from advice providers will sway them, according to Mr Barrett.
"What will matter is who can connect with these clients in an ever-present but non-intrusive way," he said.
These concerns were shared by Industry Fund Services chief executive Bill Danaher.
"Technology will fuel the business models that allow us to harness client data," he said. "But if we as a retail advice sector don't keep up, we will become obsolete and left behind. Someone will replace us with an app."
