In a research note, Morningstar analyst Garrett James noted that Iress is a scalable business with light capital and a high share of recurring revenue.

“We expect the company to benefit from the implications of the royal commission as industry players such as financial advisers and pension funds increasingly demand software that can create efficiencies, minimize costs and mitigate operational risks,” the analyst said.

Mr James said Iress’ wealth management arm was likely to benefit from the changing financial adviser landscape in Australia and its strong market share in the UK. He noted that Iress will be able to defend its market position and increase its share of the wealth management software space from 65 percent today to 80 percent in the long term.

"Following the Financial Services Royal Commission, the financial advice industry has undergone major reforms, including the phasing out of legacy commissions, the withdrawal of major banks from the sector and higher education and compliance requirements for advisers," the Morningstar analyst said.

“Iress is well positioned to capitalize on these trends as advisers previously aligned with major Australian banks likely to have used Xplan, and we predict they will continue to favor this software with their new licensees or practices. "

Xplan is also the UK's market leading software for financial advisors. Morningstar expects this to continue.

Mr James also expects Ires to benefit from changes in the Australian superannuation industry. The royal commission has uncovered poor risk management and administration practices at some of the country's biggest super funds, most of which operate in-house administration services.

In October 2019 Iress has signed an agreement with ESSSuper to provide automated retirement pension administration services.

"We expect this division to continue to grow as pension funds aim to minimize costs, maximize investment fund returns and stay compliant with increasing regulatory burdens," Mr James said.