Exactly. They will need to develop Class Company and also ensure Class Trust can handle Unit Trusts and Discretionary Trusts (including Testamentary Trusts).
They do that and your average Chartered firm will basically be cranking everything through Xero (business) and Class (Investment). Some really low key tax structures may live on in excel or legacy systems but that’s about it.
There is easily 100,000+ subscribers on the offer outside of SMSF. Once all of a firms investment entities are on Class, making use of consolidated client reporting (hopefully dramatically improved) etc then Class revenue is even stickier (retention is already close to 100% as is). The reality is even if another software company tried to address the Non SMSF opportunity without an SMSF product it won’t be compelling vs Class. And developing an SMSF product is very difficult. BGL will be forced to develop non SMSF products too I’d imagine otherwise they will be in big trouble. No one wants to be giving their client a login to Class Trust/Company and a separate login to BGL Super. That’s a a right mess.
BGL are a lot like MYOB (follow the leader - and claim to be innovative) so I’m sure they will make an announcement soon.
CL1 Price at posting:
$1.45 Sentiment: Hold Disclosure: Not Held
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