Advisers continue to hold concerns over the potential bottom line costs to their business that would be imposed by a client opt-in advice process.
In response to our question:
What single issue will have the biggest impact (positive or negative) on the profitability of your advice practice in 2012?
- 41% of advisers have said the implementation of an opt-in process is what they believe will have the greatest (presumably negative) impact on their practice profits
- 27% believe the national economy will have the greatest impact on the bottom line of their business in 2012
- Only 9% of advisers said the banning of investment and superannuation commissions will have the most significant impact on their business profitability this year (we wonder what this percentage would have been if we had asked the same question only a few years ago).
The concern over the cost of opt-in appears to have as much to do with the ongoing uncertainty over the fine details associated with its implementation, as there is with a fully priced projection, the estimates of which still range from $11 to $95 and up to $250+ per client.
We also note that the vast majority of advisers do not count the prospect of continuing to receive volume bonus payments as being a major contributing factor to their profitability in 2012.
As we approach crunch time in February and March for the tabling of two reports in relation to elements of the FoFA Bills, including opt-in requirements, our poll remains open for you to add your vote if you have yet to do so, and to leave your comments…
