Poll Update – Risk Advice Fees and Commissions

Could your advice practice survive and prosper if you were forced to charge a fee for life insurance advice?

Clarification has been received in the last week that the prospect of a blanket ban on risk commissions may not be as much on the regulatory agenda as first thought.

Our current poll asking whether your risk business could survive and prosper if forced to charge a fee for life insurance advice was based around a comment made in a speech by new ASIC Chair, James Shipton, that appeared to indicate ASIC supported a ban on all conflicted remuneration, including risk commissions.

At a Senate hearing last week, however, Shipton clarified that the statement made in his earlier speech wasn’t intended to include risk commissions (see: Life Insurance Commissions Will Remain – ASIC).

A very careful reading of the ASIC Chair’s response to the Senate Economic Legislation Committee last week indicates Shipton may have left the door very slightly ajar to return at some point to the question of the future of risk commissions.

In the meantime, however, this poll has become the second biggest in the almost ten years that Riskinfo has been seeking your views – second only to the response made by Riskinfo readers following the publication of the self-regulatory solution proposed by John Trowbridge in March 2015.

For that reason, we’ve left our poll question open to you for one more week – and while the prospect of a total ban on risk commission has abated, at least for the time being, the results to this poll make for sobering reading for advisers if risk commissions are indeed banned in the future…

 

  • Jeremy Wright

    The door will always be left ajar to allow future attempts to further whittle away the earning capabilities of Life risk adviser practices, that is how the world works.

    The AFA and FPA need to learn from their mistakes of the past and present, when it comes to Life Insurance advice. ( They have a lot to learn )

    Big Companies will continue to look for avenues to increase profits, that is fair enough.

    Where it becomes a big problem, is where they hoodwink Government into thinking there is an issue, that is far less an issue in reality, though worse still, they concoct a false story to feather their own nests at the expense of all Australians.

    The biggest fear big Business and Government have, are when people finally say enough is enough and they stand up and say NO MORE LIES.