{"id":11329,"date":"2011-07-06T10:52:33","date_gmt":"2011-07-06T00:52:33","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=11329"},"modified":"2021-04-15T10:17:38","modified_gmt":"2021-04-15T00:17:38","slug":"clear-adviser-message-to-shorten-on-cost-of-opt-in","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2011\/07\/06\/clear-adviser-message-to-shorten-on-cost-of-opt-in\/","title":{"rendered":"Clear Adviser Message to Shorten on Cost of Opt-in"},"content":{"rendered":"

\"Vote<\/a><\/p>\n

Advisers have overwhelmingly agreed that the introduction of a client opt-in arrangement will lead to\u00a0a significant additional cost to their business.<\/p>\n

Responding to our latest survey, 96% of advisers have said they believe a two-year opt-in requirement will impose an additional cost to their business, with 89% saying this additional cost will be ‘significant’.<\/p>\n

This strong response follows comments made recently\u00a0by Financial Services Minister, Bill Shorten<\/strong>, that he is not convinced\u00a0a client opt-in process every two years will have a significant impact on the cost of running an advice business.<\/p>\n

But advisers disagree.\u00a0 A number have responded that it is hard enough to get any paperwork back from their clients without having also to chase them to complete, sign and return an opt-in form every two years.<\/p>\n

Other advisers have questioned how opt-in would work for those clients that are serviced under\u00a0corporate and group advice schemes, while others have said this task will be even more difficult to complete for advisers who provide services in regional and rural areas.<\/p>\n

The broad and consistent message is that the time and effort it will take to\u00a0ensure opt-in arrangements are properly managed, with associated follow-up, administration and monitoring systems in place, will come at a substantial cost to the business.<\/p>\n

But not all advisers agree about the potential financial burden of opt-in.\u00a0 This comment was made by\u00a0a risk specialist adviser:<\/p>\n

The more planners complain about how this change will cost them so much, the more obvious it is to everyone else that their businesses [are] not setup to service clients from whom they are getting paid. This is exactly what the changes are aiming to fix… If anything, this is justifying the government’s decision to introduce opt-in.<\/em><\/p>\n

Mr Shorten has indicated that the\u00a0draft Future of Financial Advice\u00a0legislation containing the opt-in regulations will be released in August.\u00a0 He has also noted that there are two\u00a0key areas where he is still considering industry views:\u00a0the banning of risk commissions in superannuation and the rules governing opt-in.<\/p>\n

Our poll remains open for you to have your\u00a0say, during the final\u00a0weeks before the legislation becomes locked in…<\/p>\n

\"Vote<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Advisers have overwhelmingly agreed that the introduction of a client opt-in arrangement will lead to\u00a0a significant additional cost to their business. Responding to our latest survey, 96% of advisers have said they believe a two-year opt-in requirement will impose an additional cost to their business, with 89% saying this additional cost will be ‘significant’.<\/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],"tags":[],"class_list":["post-11329","post","type-post","status-publish","format-standard","category-compliance-regulation","category-polls"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/11329","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=11329"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/11329\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=11329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=11329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=11329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}