The financial advice landscape in Australia is experiencing rapid transformation, presenting both opportunities and challenges for advisers. While 84% of advice practices anticipate growth over the next two to five years, our latest research highlights a significant readiness gap. Many practices recognise the need for scalable, more efficient client service models, yet struggle with choosing and implementing viable solutions.
Through our Unlocking Advice Efficiencies in 2025 report, we’ve identified six key shifts shaping the future of advice businesses.
1. The need to offer advice at scale
As the demand for financial advice increases, practices must balance personalisation with efficiency. Leveraging scalable investment solutions such as managed accounts, digital tools, and streamlined processes will be essential to maintain service quality while scaling operations.
2. Growing pool of retirees/pre-retirees needing decumulation advice
With more Australians transitioning to retirement, advisers must refine their expertise in decumulation strategies. Providing advice on and access to tailored, appropriate income solutions and tax-efficient investment strategies will be key to supporting this growing client segment.
3.Compliance & regulatory changes
Regulatory demands continue to evolve, placing pressure on advisers to ensure compliance while maintaining operational efficiency. Proactive technology adoption and strategic partnerships with managed account providers can help reduce the burden and improve risk management.
4. Changing licensees & dealer group structures
The shifting landscape of dealer groups and licensees means advisers need to assess availability of access to support services carefully. Understanding the services, resources, and tools available can help advisers navigate these changes effectively and optimise business operations.
5. Intergenerational wealth transfer
With an unprecedented shift in wealth to younger generations, advisers must rethink their approach. Engaging with the next generation early, adapting service models, and understanding evolving investment preferences will be critical to retaining client relationships.
6. Increasing complexity of client investment briefs
Clients are becoming more sophisticated, seeking tailored investment solutions that align with their unique goals and personal beliefs. This growing complexity requires a robust framework that integrates active management, diversified asset allocations, and strategic risk management.
The preparedness-to-readiness gap
Despite the optimism for growth, many practices are not yet fully equipped to capitalise on these shifts. The transition from recognising the need for change to implementing effective solutions remains a major challenge. Bridging this gap requires:
- strategic alignment – defining clear business objectives and aligning them with scalable investment solutions like managed accounts
- operational efficiency – investing in advice and administration technology and streamlining processes to enhance client engagement and back-office functions
- partnerships – leveraging the expertise of managed account providers to optimise investment management and improve administrative efficiency, and
- education & training – equipping advisers with the knowledge and tools to navigate complex client needs and regulatory demands.
Opportunities & challenges in adapting to industry shifts
Practices view decumulation advice (83%), intergenerational wealth transfer (72%), and wealth scalability (67%) as key growth opportunities. However, a 25% gap in preparedness for scaling advice highlights the need for practices to reassess their capabilities. Larger practices report higher readiness levels, while smaller practices struggle to keep pace with structural changes and regulatory compliance.
Larger practices are more prepared – 76% of large practices feel ready to deliver decumulation advice at scale.
Scaling advice remains a critical gap – Across all practice sizes, 63% anticipate an impact, yet only 42% feel prepared.
Boutique practices face challenges – Only 31% feel prepared for changing licensee and dealer group structures.
The role of managed account providers
Advisers increasingly recognise the importance of managed account providers in supporting scalable advice models. While only 42% of practices feel internally ready to scale the way they deliver advice, 67% believe managed account providers can significantly enhance their ability to do so. This underscores the role of external partnerships in driving efficiency and growth.
- Larger and high-growth practices see strong value – 72% report that managed account providers will play a critical role in their ability to scale their advice offering.
- Boutique and conservative practices need further convincing – With lower adoption rates (65% boutique, 53% conservative), these practices may require additional support to unlock the full benefits of managed accounts. This includes better education on this investment vehicle for advisers’ end-clients.
How Zenith can support your business
At Zenith Investment Partners, we work closely with financial advisers to implement scalable investment solutions that drive practice efficiency and ultimately improve client outcomes. Our deep expertise in managed accounts, investment research, and asset allocation ensures advisers are equipped to navigate these industry shifts with confidence.
If you’re looking to enhance your practice’s ability to scale its advice offering and leverage the power managed accounts, get in touch with our team to explore how we can support your business.
