What single issue will have the biggest impact (positive or negative) on the profitability of your advice practice in 2012?
- Implementation of opt-in processes (43%)
- State of the national economy (21%)
- Transitioning to a fee for advice model (18%)
- Banning investment and super commissions (10%)
- Other (5%)
- Potential to continue to access volume bonus payments (3%)
- Not sure (0%)
As we look ahead to the issues that will impact the financial bottom line of advice practices this year, we are asking:
What single issue will have the biggest impact (positive or negative) on the profitability of your advice practice in 2012?
We want to know whether elements of the Future of Financial Advice (FoFA) reforms are at the forefront of your thinking in terms of financial impact on your business, or whether the major concern for your advice practice relates more to Australia’s stagnant economy or to other factors, such as changing licensee fee structures.
The final details for some elements of FoFA are still to be fully revealed, particularly for areas such as Opt-in, and it should be remembered that the legislation has yet to be passed by Parliament.
However, it emerged at the end of 2011 that there may be room for advisers and licensees to continue to access volume bonus payments for investment products as well as for risk products, as long as it can be shown that those volume-related payments do not represent conflicted remuneration (see: Door Open for Volume Bonuses to Continue). How important is this to you, compared with other factors that will potentially impact your financial bottom line this year?
Let us know what other issues you believe will have a major bearing on your profitability this year…
Add your comment now
2 Comments
Opt in is my biggest concern, on top of the lack of knowledge that this G’ment has about this industry. With conflicts of interest rampant in the partnership between industry funds and G’ment it was an easy decision to sell my business and retire. I feel sorry for what I believe Planners will have to go thru under this G’ment. (You never know I may end up a whistle blower as Planner in an industry fund).
opt-in is not a threat but an opportunity-what business/industry would complain about legislation that makes them contact their clients every year?contact means service and service sells.practices that have a systematic review service will be the big winners and they should contact companies like complete client connection to discover this