{"id":10864,"date":"2011-06-08T11:37:55","date_gmt":"2011-06-08T01:37:55","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=10864"},"modified":"2021-04-15T10:17:05","modified_gmt":"2021-04-15T00:17:05","slug":"opt-in-will-drive-up-cost-of-advice-to-client-adviser-poll","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2011\/06\/08\/opt-in-will-drive-up-cost-of-advice-to-client-adviser-poll\/","title":{"rendered":"Opt-in Will Drive up Cost of Advice to Client"},"content":{"rendered":"<p style=\"text-align: center\"><a href=\"https:\/\/riskinfo.com.au\/polls\/the-cost-of-opt-in-your-say\" target=\"_self\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1228             aligncenter\" style=\"border: 0px\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2009\/05\/vote-now.jpg\" alt=\"Vote Now!\" width=\"108\" height=\"47\" \/><\/a><\/p>\n<p>Advisers have overwhelmingly rejected the notion that the introduction of opt-in measures will reduce the cost of financial advice to consumers.\u00a0 They believe the opposite will be the case.<\/p>\n<p><!--more-->In answer to our question:<\/p>\n<p><strong><em>To what extent will the introduction of client opt-in measures have an impact on the cost of advice to your clients?<\/em><\/strong><\/p>\n<p>84% of poll respondents said they believe opt-in will lead to either a higher or significantly higher cost to client.\u00a0 Only 6% said opt-in will lead to lower or significantly lower client fees, while the rest\u00a0believe opt-in measures will have little impact on the cost of financial advice to clients.<\/p>\n<p>Many of the comments we received from advisers in response to our poll story and our report on the Rice Warner research findings commissioned by the Industry Super Network (<a href=\"https:\/\/riskinfo.com.au\/news\/2011\/05\/30\/isn-claims-opt-in-cheaper-for-consumers\/\" target=\"_self\" rel=\"noopener\">click here<\/a>) related to the belief that the findings are not entirely valid because the study was undertaken in isolation.\u00a0 Advisers said the research\u00a0should also have taken into account of the fact that most clients need ongoing advice to maintain an\u00a0investment and insurance portfolio that continues to reflect their needs.<\/p>\n<p>Advisers also questioned the quality of the advice provided by industry funds, summed up by the comment:<\/p>\n<p style=\"padding-left: 30px\"><em>Do the industry funds know the children&#8217;s names &amp; occupations?<\/em><\/p>\n<p>This same adviser also continues:<\/p>\n<p style=\"padding-left: 30px\"><em>&#8230; do they attend the funerals of their clients like I do?<\/em><\/p>\n<p>A number of advisers also questioned whether the cost of client advice provided by industry funds was subsidised by the member fees paid by all members, and whether this cost should be taken into account when determining the true cost of upfront financial advice.<\/p>\n<p>Other advisers simply made the point that the more\u00a0compliance requirements that need to be observed means an inevitably higher cost that must be passed on to the consumer.<\/p>\n<p>This debate continues and our poll remains open.\u00a0 We want to know what you think&#8230;<\/p>\n<p style=\"text-align: center\"><a href=\"https:\/\/riskinfo.com.au\/polls\/the-cost-of-opt-in-your-say\" target=\"_self\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1228             aligncenter\" style=\"border: 0px\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2009\/05\/vote-now.jpg\" alt=\"Vote Now!\" width=\"108\" height=\"47\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Advisers have overwhelmingly rejected the notion that the introduction of opt-in measures will reduce the cost of financial advice to consumers.\u00a0 They believe the opposite will be the case.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[],"class_list":["post-10864","post","type-post","status-publish","format-standard","category-compliance-regulation","category-polls","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/10864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=10864"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/10864\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=10864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=10864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=10864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}