Hi DB. I'll take a stab at some numbers, with a few assumptions...

Hi DB. I'll take a stab at some numbers, with a few assumptions of course.

Your question is timely, as the announcement of the royal comm might actually be a huge advantage for IAM. The banks will be looking to show they have taken steps to improve their compliance, monitoring and supervision of staff.

Take cost out of it for a minute. A major issue the big guys have is monitoring and supervising the advice that has been provided by it's representatives - basically they can't.

Current software will spit out a SOA, which is then manually altered by the paraplanner in essentially a word document, of which anything can be added or deleted, and is a manual process whether the necessary compliance requirements are in there. A lot of room for human error, or fraud, of which the licensee has no visibility, over either what is being recommended, or whether the SOA is compliant, unless they individually view each file.

There needs to be a better way.

Now Boom2 promises to do this with little to nil human input, no chance for manipulation. I can see the licensees being VERY interested in this, and being able to take control back over their compliance. Assume all SOA could be stored centrally - now I could see elements of AI utilised to scan each document to ensure it is compliant before it is presented to the client.

Licensees have been reluctant to force their planners to use particular software, however, in view of the RC, and with compliance in mind, I could easily see any of the big licensees mandating that their planners utilise a service offer like that. Cost won't be the issue, we have seen CBA's bill recently top $35Mil for poor advice provided by their planners.

So back to your question DB, I have attached a image I found with number of advisers per licensee, across the whole group. Can't guarantee it is 100% up to date, so figure on 10% either way.

AMP Listed at 2870, CBA 1719 and NAB 1667 as a start.

IF AMP took the approach above, and mandated all advisers use IAM for example, they have 2870 on the books according to the image. A few of us on here came up with an adviser providing 1.5 SOA per week, over 45 weeks pa, at a price of $400 average IAM revenue. I'll assume they would get a better deal, but each can do their own calcs on that.

That's approx. $77 Million. That is also not factoring in any cost for the additional CRM functionality, but for $77m, sure they can throw it in.

My opinion only, but if they can hook a big fish, it will take time to implement, however, the opportunities are huge.

GLTAH