MLC Life Insurance has welcomed the Quality of Advice Review Proposals Paper saying it reveals a pathway to ensure more Australians have access to financial advice.
(Also see: Huge Impact, Great Opportunity for Advice Profession.)
Michael Downey, General Manager for Retail Distribution Partnerships, MLC Life Insurance, says the company believes all Australians should have access to good advice –“…it is better for them, better for society, better for taxpayers, better for everyone.”
He states that successive and ongoing regulation of the advice process has made insurance advice far too costly, leaving too many Australians vulnerable to life events.
“The Proposals Paper is a step in the right direction and shows there will be meaningful change in reducing the costs associated with providing advice by removing needless red tape while ensuring consumers are protected.”
Downey says this will in turn “…allow more customers to engage with advice firms who have drifted away from providing insurance advice to clients, to now reconsider including it as part of their advice proposition, ensuring these customers have the appropriate level of insurance protection.”
…we believe the proposed reforms to the statement of advice, fee disclosure statements, and the obligation to provide good advice are encouraging…
He notes that while the industry awaits further detail about the future of life insurance commissions, “…we believe the proposed reforms to the statement of advice, fee disclosure statements, and the obligation to provide good advice are encouraging.” (See: Scrap SoAs – QoA Review Reccomendation.)
Downey says that on a practical level, this will save a significant portion of administrative time for advisers, “…leaving them to focus more on the needs of their existing and, importantly, future customers.
“Ultimately, we must do what’s right for our customers and their advisers, which means ensuring more advice, not less,” he says.
