Latest Poll – LIF 2020


Year three of the Life Insurance Framework transition period (2020) will have a greater impact on my advice business than has year two (2019)

  • Agree (85%)
  • Disagree (9%)
  • Not sure (6%)

At the end of a sometimes bruising year for risk-focussed advisers and advice businesses, we’re keen to establish your outlook as you enter the New Year.

Twelve months ago, the prospect of moving from 88 percent to a new cap of 77 percent upfront commissions for life insurance advice solutions under the Life Insurance Framework remuneration reforms saw 82 percent of advisers indicate they felt they were in for a tougher year:

Twelve months ago, most advisers were clearly concerned about the future direction of their advice business…

Does the same outlook apply twelve months on, as advisers now move into the capped 66 percent upfront commission era?

We appreciate there are a host of other issues impacting the future outlook for many advisers, including the prospect of sitting and passing the FASEA adviser exam, the end to grandfathered investment and super commissions, the implementation of the FASEA Code of Ethics and the roll-out of the new minimum adviser education standards.

In isolation, however, will the move from 77 percent upfront to a maximum 66 percent upfront commission be the straw that will break the camel’s back? Or if you’ve come this far, will you be in a position to accommodate the extra ten percent upfront cap reduction within your advice business model?

To reflect that the financial advice community is facing challenging times is an understatement, as the winds of regulatory change continue to circle around the sector.

So, where are you right now, when it comes to maintaining a sustainable life insurance advice proposition?

Tell us what you think and we’ll report back to you on the other side of the festive season…