Suncorp Life will cease its involvement with self-employed advisers announcing a six-month transition away from its’ Guardian Advice and Suncorp Financial Planning licences.
The insurance group, which will retain its direct insurance channel, stated the move would affect around 170 advisers across the two groups.
Suncorp Life, Acting Chief Executive, Jeremy Robson said the move away from self-employed, aligned advisers would simplify its distribution model “in line with our strategic priorities and in the interests of advisers and customers”.
Robson said the insurer would continue to offer life insurance and superannuation products through the wider Suncorp Group’s brand and would continue to work with non-aligned independent advisers and its direct channels.
According to Suncorp advisers within the Guardian Advice and Suncorp Financial Planning licences would either be able to join another licensee, set up under their own licence or form a new advice group or retiring from the industry.
Non-aligned planning group Infocus has been selected by Suncorp as a future licensing partner for the advisers set to leave the two planning groups.
While Suncorp has stated around 170 advisers will be impacted these numbers are lower compared with those recorded on the Australian Securities and Investments Commission (ASIC) Financial Adviser register.
Currently the register lists 108 advisers for both Guardian Advice and Suncorp Financial Planning while at the release of the register in May of this year adviser numbers for the two groups were 149 and 116, respectively.
Robson said the insurer was working with advisers to identify their options and that during the transition any changes which affected customers would be passed on them via their adviser. However, there was unlikely to be an impact to the terms of current products or policies held by those customers.
The transition will conclude only weeks before the start date for the Life Insurance Framework and comes at the end of a year in which Guardian Advice had further conditions imposed on its licence by ASIC.
At the time ASIC stated this was a result of deficiencies in the advice provided to retail clients and a failure to comply with its general obligations as a licensee, including failing to properly supervise its authorised representatives.
Hours after Suncorp Life announced the move away from its self-employed advisers, ASIC stated the insurer had undertaken to complete the client remediation program of work provided for in the additional licence conditions and to fund the compensation of Guardian Advice clients, if required.
ASIC also stated that Suncorp had committed that all relevant recommendations made by the expert appointed to Guardian Advice, under the additional licence conditions, would be implemented in the continuing Suncorp financial advice business.
So Geoff Summerhayes has left Suncorp with it dealerships reeling under scandals and enforceable undertakings and has now joined a regulator (APRA). Clearly nothing has changed, its not what you do, its who you know. Unbelievable!
RC, There was no enforceable undertaking with Guardian – just an understanding and agreement to bring in PWC and do some remediation. Agreed though, it is probably an academic point at best. Disgusting the way Suncorp AND Guardian handled and communicated this. Simon Harris, Head Of Dealerships has rightly decided to leave Suncorp, effective now. *WARNING TO GUARDIAN AND ALL OTHER ADVISERS LOOKING FOR A DEALER HOME CURRENTLY*: Do NOT go near another institutionally owned dealer – most will NOT exist in 5 years, they are deserting the space and Suncrop/Guardian is only the first. Join a smaller independent with the tools you need and can support you. Check out the PI cover clauses through an expert as they only exist in their current form to protect the dealer and offer VERY little in the way of adviser protection. Please heed this warning – it could mean losing your house and other assets. This is not said to you lightly or without detailed background knowledge. I’ve seen this proven in real life so PLEASE make it a TOP priority to examine not only your current dealer’s PI cover but any you may move to in future. Check it NOW do not delay. Best of luck to you all, it will be needed.
Watch this space. In the same way Ford, Holden and Toyota have abandoned manufacturing, fairy soon, other majors relinquish their adviser channels. Holden moved soon after once Ford bit the bullet and then soon again was Toyota. My hope is that Guardian advisers will NOT go to large institutional dealers lest they have to go through this idiocy of relocation again in 18mths. Suncorp should hold their heads in shame for not giving at least 12 months notice to these poor advisers. 6 months is barely enough time to properly consider the best new home – especially if one would like to start their own AFSL.
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Life companies and their lacky dealers have no place in our industry in their current form with their current attitudes that fly in the face of ‘client best interest’. Small independents, God bless ’em, are the only safe place for advisers now. Seriously, most advisers would turn white if they knew truly the extent to which they are UNPROTECTED by the PI cover at these larger dealers.
Do yourselves a huge favour and make it a personal project to find out the gaping holes that put the humble adviser at risk every single day they are out their helping their clients. Do it now, or pay the ultimate price of your client base and home GONE if a claim blows up – you probably will NOT be protected as you think you are. I most definitely know what I’m talking about here, please believe me and don’t put it off. Investigate your PI cover, in detail, now!
Do yourselves a huge favour and make it a personal project to find out the gaping holes that put the humble adviser at risk every single day they are out their helping their clients. Do it now, or pay the ultimate price of your client base and home GONE if a claim blows up – you probably will NOT be protected as you think you are. I most definitely know what I’m talking about here, please believe me and don’t put it off. Investigate your PI cover, in detail, now!
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