February 6, 2019
Outspoken Synchron Director, Don Trapnell, is urging life companies to back his call for the industry to draw a line in the sand and separate risk advice from financial planning advice.
Trapnell’s call comes in the wake of the finalisation of the FASEA adviser examination and minimum education requirements that will be imposed on all advisers from 2021 and 2024 respectively (see: FASEA Finalises Education Pathway Requirements).
…if there is no separation of risk advice and financial planning advice, there is likely to be a mass exodus of risk advisers
He warns that if there is no separation of risk advice and financial planning advice, there is likely to be a mass exodus of risk advisers from the industry. In a reference to the FASEA education requirements, Trapnell said, “Specialist risk advisers have a different skill set and provide different services to financial planners and always have. It is therefore difficult to see why there is such a push for them to hold the same qualifications and commit to the same educational program as financial planners. It doesn’t really make sense,” he said.
Trapnell is seeking support from life insurers to join Synchron in its call for the separation of risk advice from financial planning advice, with a possible glimmer of hope resting in some observations made by the AFA in its own response to the final FASEA education requirements, in which it indicated that it would be possible to modify FASEA’s legislative instruments.
The consistent argument put by Synchron has been that licensees should be able to hold a specialist AFSL to deal in financial planning advice and/or a life insurance broker licence. It argues a licensee could then choose to hold one or, as Synchron says it would, both licenses and their authorised representatives could be authorised in either or both.