June 5, 2018
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…