When ASIC released its FY25 corporate plan, one priority stood out: monitoring offshore outsourcing in financial services. Alongside consumer outcomes and transparency, the regulator is zeroing in on how advice firms and investment managers manage risk when working with offshore providers.
What was once a side hustle has become a full-fledged industry. In the past five years, advice firms have leaned heavily on offshore teams for paraplanning, admin, and IT. The drivers are clear: local talent shortages, rising salary expectations, and the shift to remote work post-Covid.
Outsourcing providers themselves have matured: growing in size, sophistication, and capability. Many firms now run large offshore teams that are integral to their operations. With the sector’s growth, regulatory attention is not just expected, it’s essential.
With opportunity comes responsibility. Mismanaging outsourcing relationships can lead to disruption, lost revenue, reputational harm, and client distrust. Stakeholders from regulators to clients expect firms to actively monitor their third-party providers and strengthen cyber resilience.
The timing is critical. The Delivering Better Financial Outcomes reforms will expand advice access just as adviser numbers shrink and costs rise. Outsourcing will play a bigger role in meeting demand, but so will the risks tied to data, privacy, and cyberattacks.
ASIC’s focus should be seen as an opportunity, not a threat. By lifting governance standards and embedding best practices now, firms can future-proof their operations and build trust.
That means:
AI and automation will eventually take pressure off human capacity, but today, the advice industry still relies on people, and many of those people are offshore. The firms that succeed won’t just outsource; they’ll outsource well, with robust risk management, strong culture, and systems that protect clients and business alike.
For advice leaders, ASIC’s spotlight is a reminder: outsourcing is no longer just about efficiency. It’s about resilience, trust, and long-term growth.
This article originally appeared in Professional Planner
https://www.professionalplanner.com.au/