Produced By: Ensombl
Professionalism and ethics form the cornerstone of financial advisory services. As the environment in which clients seek advice becomes increasingly complex, so too does the responsibility upon professionals to provide guidance that is both effective and principled. In a recent podcast discussion, hosted by Peita Diamantidis and joined by special guest Kelli Willmer, Executive General Manager of Wealth at Iress, the conversation explored key shifts that will reshape the financial advice sector. From rising retirement demands and housing unaffordability to the role of artificial intelligence, the overarching message is one of collaboration and forward-thinking.
The following article distills that conversation into a cohesive narrative, placing a strong emphasis on professionalism and ethics. Readers will find insights on how the financial advice industry can adapt to new technological possibilities while continuing to act in the best interests of clients. Each trend mentioned is backed by data, fueled by research—most notably the work done by Iress and Deloitte in the Advice 2030: The Big Shift report—and driven by the clear ethical imperative of giving more Australians access to quality advice.
Financial advice, like many industries, has undergone continuous change. However, the last decade brought an unusual amount of regulatory upheaval and reactivity to new rules. Advisors often felt overwhelmed by legislative changes, compliance pressures, and a media narrative that leaned toward pessimism—particularly after major inquiries such as the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Yet beneath the gloom, the number of Australians needing, wanting, and genuinely benefiting from advice is soaring. As Peita Diamantidis and her guest highlighted, the current climate presents an ideal moment to pause, reflect, and strategically plan. The Advice 2030 report, created in partnership between Deloitte and Iress, reveals significant potential: Deloitte’s figures indicate a multibillion-dollar opportunity to bring more advice to more Australians.
The first key takeaway is that opportunities are everywhere. Despite reduced adviser numbers and an increasingly stringent professional environment, firms are finding they can be more selective with clients—often maintaining waitlists for the first time in years. This scenario, ironically spurred by perceived challenges, has allowed practitioners to crystallize their niche markets and reimagine the service models they offer.
From an ethical standpoint, there is tremendous value in focusing on how to best serve new and emerging client segments, as well as existing clients experiencing new life stages. The potential for greater inclusivity is enormous—particularly for those in demographics previously overlooked due to perceived complexity or lower investable assets.
In the Deloitte and Iress research, seven “megatrends” or key disruptors were identified. Among those highlighted in the podcast were:
These converging forces point to a new frontier where professional ethics go hand in hand with innovation. Advisors can no longer think exclusively in terms of product distribution or basic compliance. Instead, they need a holistic view of the client experience, from wealth accumulation to potentially non-traditional retirement solutions, factoring in everything from rising longevity to the possibility of never owning a home.
Traditionally, retirement planning assumed that by the time individuals stopped working, they would own their homes. That is no longer guaranteed. Changing property markets, shifting job prospects, and evolving generational attitudes mean advisors now must counsel clients who might never become homeowners. In addition, demographic realities around the impending baby boomer retirement surge—and the corresponding wealth transfer—means advisors have to plan for dual or even triple complexities in a family’s finances.
From an ethical standpoint, advisors serve their clients best by recognizing that many conventional assumptions—such as a house serving as an asset of last resort—may not apply. Professionalism dictates that advisors stay well-informed, employ robust modeling tools, and convey any potential risks or constraints clearly and transparently.
Another powerful disruptor is climate change and the associated increase in natural disasters, from flooding to bushfires. Homes in high-risk areas may become uninsurable. Entire populations could face new vulnerabilities without readily available coverage. Advisors must be proactive in identifying emerging risks, exploring possible contingency plans, and providing candid counsel on the limitations of insurance or the need to self-insure.
While the immediate ethical imperative revolves around informed consent—i.e., ensuring clients comprehend the financial vulnerabilities of their choices—there is also a broader professional duty. Providing truly holistic advice means understanding that risk management extends far beyond standard life or income-protection policies. It includes the recognition of environmental hazards that are less predictable but increasingly frequent.
Advances in technology have always shaped the financial services industry. Now, however, with the acceleration of artificial intelligence (AI), machine learning, and digital advice tools, the pace of change outstrips anything previously seen. AI offers the chance to streamline data input, identify errors, automate administrative tasks, and even provide predictive models for client engagement.
At the same time, these technological capabilities trigger ethical considerations. Advisors and solution providers such as Iress must remain vigilant about data security, privacy, and the potential biases that AI systems can introduce. The fundamental question becomes: How do we harness technology to serve clients more ethically and efficiently, without diluting the human element that underpins trust?
For many advisory firms, the real potential of AI lies in its ability to remove friction points and speed up processes. As discussed in the podcast, one key area is the fact-finding process. The notion of an AI-driven prompt that flags incomplete information or contradictory data not only improves accuracy but also frees up valuable time. If a client’s expenditure is listed at a higher level than their income, for instance, an AI system could flag that discrepancy, prompting advisors to probe further in a timely manner.
Such improvements can genuinely uplift the quality of advice, as more time is spent on nuanced strategy rather than remedial data entry. However, the professional and ethical guidelines must ensure that any final recommendation remains grounded in human judgment. AI should not become a substitute for the empathy, understanding, and context that only trained, ethical advisors can bring.
In line with shifting consumer preferences, the conversation around technology also covered client-facing modeling tools—specifically, how to visualize data with enough clarity that everyday Australians can understand. Advisors have long recognized the importance of “showing, not just telling.” Modeling retirement projections, debt levels, insurance gaps, or potential outcomes of a market downturn can be transformative when these scenarios are displayed in a clear, engaging format.
As Iress and similar providers develop new visual planning suites, the focus moves from a purely back-office resource to something that fosters better client understanding. The ethical lens here: improved comprehension means clients are more likely to make informed choices. This leads to higher client satisfaction, less likelihood of dispute, and a greater degree of trust in the advice process overall.
One of the most significant developments spotlighted was the rise of “digital advice” models. Digital or “robo” advice solutions have existed for years, but they often operated in isolation from comprehensive advice offerings. Now, progressive advisory firms are beginning to integrate these tools into their service models, creating a two-tiered approach: a broader, more accessible entry-level service for clients with simpler needs, and a more intensive, relationship-oriented service for those requiring in-depth strategy.
Ethically, expanding access to advice is paramount. The reported “advice gap” persists due to high costs and a minimum asset threshold that many Australians cannot meet. By offering automated or semi-automated solutions that handle less complex needs, advisors may reach a market segment that would otherwise never receive professional guidance. Over time, as those clients’ financial positions evolve, they can transition into more comprehensive, one-on-one advisory relationships.
Tools that automate or streamline certain advisory elements are not just beneficial for small-balance clients. They also serve as lead-generation avenues for practices. When potential clients can test out basic projections for retirement adequacy or insurance coverage, it sparks curiosity. The next step often involves scheduling an in-person (or virtual) consultation to delve deeper into nuanced planning.
By integrating AI into these digital advice experiences, an advisor does more than just future-proof their practice. They extend an ethical duty of care to underserved segments, ensuring that “entry-level” advice meets regulatory requirements while promoting financial literacy.
The concept of collaboration, or working in partnership, resonated throughout the podcast. Collaboration must occur at multiple levels to ensure the best outcomes for end clients:
In the past, technology providers like Iress often served major institutional clients, focusing largely on large-scale feature requests. Smaller, independent practitioners sometimes felt overshadowed, believing their voices got lost in the shuffle. As the industry landscape evolves—post-institutional realignments—technology providers are changing how they solicit and incorporate feedback.
This shift demonstrates another dimension of professional ethics in the advisory ecosystem: solution providers must act responsibly with the data they manage, but they should also remain receptive, agile, and responsive to the real-world challenges that advisors encounter. For instance, if multiple smaller practices struggle with a certain function—such as property modeling or crypto-asset tracking—stronger collaboration can yield new product features that benefit everyone.
No longer can we look exclusively at, say, fund performance data or superannuation contributions in isolation. Next-generation advice will require seamlessly integrating third-party information—ranging from general insurance coverage in disaster-prone areas to niche investment categories like cryptocurrencies.
Ethically, advisors must ensure that the data they use remains accurate, unbiased, and secure. But there is also a direct responsibility for technology providers to maintain robust cybersecurity, clarify how AI algorithms operate, and avoid any manipulative design that could distort client decision-making.
Another underexplored theme is the question of who will deliver all this advice in the years ahead. Professionalism is not only about how current advisors act but also about cultivating the next generation of practitioners. With the number of advisors projected to grow at just over 1% in the coming years—while a massive portion of the workforce retires—this presents real succession challenges.
The profession has often lacked structured pathways akin to other professions (e.g., accounting or law). Many advisors “fell into” the role through varied backgrounds. As business owners take a strategic pause to adapt their practices to new technology, so too must they consider training and mentorship pathways. Ethical responsibilities include:
As technology evolves, so must advisors. No longer can a practitioner expect to rely on a handful of techniques learned decades ago. Ongoing professional development (CPD) is key, and it should encompass not just legislative updates but also new financial products, changes in consumer behaviors, and client engagement methods.
By collaborating with solution providers that integrate real-time data and forward-looking tools, advisors can keep their knowledge fresh and continue to practice at the pinnacle of professionalism.
At its core, financial advice is a relationship business built on trust. Any prospective client must believe in the integrity, expertise, and sincerity of the advisor. Technology can amplify that trust by reducing administrative errors, presenting data more transparently, and opening doors for new client segments to access advice. However, it can also erode trust if data is mishandled, biases creep into automated recommendations, or disclaimers are brushed aside.
One of the strongest ethical pillars is transparency. Advisors bear a duty to communicate potential conflicts of interest, elaborate on the risks involved with recommended strategies, and maintain clarity about fees and costs. Likewise, technology firms must be transparent about how they handle sensitive client data, as well as how AI-driven features make decisions.
As new product categories—like retirement income stream products and alternative investments—gain traction, transparency in product comparison, product fees, and product-specific risks remains paramount. Advisors must continue to reference reliable research, present objective analyses, and clarify the short- and long-term consequences of each recommendation.
Despite the advantages of digital tools, advisors must guard against reducing advice to a mere “check-the-box” exercise. Human empathy, active listening, and moral responsibility cannot be replicated by AI or any automated process. By leveraging technology ethically—letting automation handle repetitive tasks and straightforward queries—advisors free themselves to devote more time to nurturing the client relationship and addressing the sophisticated or deeply personal elements of finance.
Given the opportunities, it can be challenging to determine where to begin. Below are suggested actionable steps that embody both professionalism and ethics:
Throughout the discussion, it became clear that the future of financial advice is neither purely doom-and-gloom nor unbridled euphoria. It is a sophisticated balance of applying robust technology solutions and sustaining high ethical standards. Collaborative approaches—whether between advisors and clients, technology providers, or entire industry bodies—will foster conditions in which more Australians can enjoy access to high-quality, personalized, and transparent financial advice.
Organizations such as Iress, historically serving both large institutions and smaller practices, find themselves well-placed to unify the industry under a common goal: equipping advisors with intuitive, compliant, and future-focused technology. Meanwhile, advisors who integrate new digital tools thoughtfully, keeping their professional and ethical obligations front and center, will be best positioned to serve a rapidly changing client base.
Ethics remain the bedrock of professional advice. Regulations provide a minimum requirement, but the true caliber of an advisor is shown in how they embrace their moral responsibility to guide clients responsibly. Technology can and should strengthen that obligation by streamlining processes and providing greater data insights. Yet it is the human element—empathetic, responsive, and cognizant of each person’s unique financial situation—that will truly differentiate the profession in the coming years.
As we step into an era defined by rising consumer expectations, shifting demographic trends, and fast-moving technological innovation, financial advisors have a rare opportunity to reshape perceptions of the advice industry. No longer must they reactively adapt to external pressures. Instead, they can proactively deploy AI and other digital solutions to create a more engaging, inclusive, and ethically robust experience for clients.
Professionalism in advice extends beyond ticking regulatory boxes. It is about acting with integrity, treating client data with utmost respect, and continuously refining one’s practice in anticipation of future disruptions. Similarly, ethical considerations transcend product recommendations. They inform how risk is communicated, how technology is incorporated into daily workflows, and how advisory practices bring new professionals into the field.
Ultimately, the conversation—originally sparked by the Advice 2030: The Big Shift research—serves as a clarion call for collaborative momentum. Advisors, technology providers, regulators, and clients themselves must work in harmony to ensure that financial advice remains not only profitable but also purposeful. By focusing on continuous improvement, embracing innovation, and upholding the highest ethical standards, the industry can fully capitalize on the opportunities ahead—offering greater stability and reassurance to Australians, regardless of what financial challenges the future may bring.
Accreditation Points Allocation:
0.10 Technical Competence
0.10 Client Care and Practice
0.20 Professionalism and Ethics
0.40 Total CPD Points