{"id":14654,"date":"2012-03-13T20:35:22","date_gmt":"2012-03-13T10:35:22","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=14654"},"modified":"2012-03-14T11:24:27","modified_gmt":"2012-03-14T01:24:27","slug":"risk-commissions-best-interest-and-conflict-of-interest","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2012\/03\/13\/risk-commissions-best-interest-and-conflict-of-interest\/","title":{"rendered":"Risk Commissions &#8211; Best Interest and Conflict of Interest"},"content":{"rendered":"<p style=\"text-align: center\"><a href=\"https:\/\/riskinfo.com.au\/polls\/risk-commissions-best-interest-and-conflict-of-interest\" target=\"_self\"><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>Our latest\u00a0poll is based around the recommendation that ASIC should conduct a shadow shopping survey, post the implementation of the Future of Financial Advice (FoFA) reforms, to monitor whether conflicted advice on risk insurance outside superannuation will be delivered to consumers.<\/p>\n<p><!--more-->The concern expressed by the Parliamentary Joint Committee on Corporations and Financial Services in making this recommendation to ASIC stems from a number of submissions it received, arguing that\u00a0the retention of adviser commissions for risk advice outside superannuation &#8216;&#8230; encourages the retention of conflicted remuneration models.&#8217;<\/p>\n<p>Our question\u00a0(post implementation of the FoFA reforms) is:<\/p>\n<p><strong><em>Will you be more disposed to placing life insurance business outside superannuation in order to access commission-based remuneration?<\/em><\/strong><\/p>\n<p>The Committee, headed by MP <strong>Bernie Ripoll<\/strong>, said it is mindful of the prediction that in a post FoFA world, life risk insurance will be the product most likely to provide advisers with commissions. riskinfo sees this statement as a \u2018no-brainer&#8217; because life risk commissions (together with general insurance and mortgage contract commissions) will be virtually the only mainstream financial advice products that will continue to offer commission as a remuneration option.<\/p>\n<p>But to what extent will this influence your approach to the advice you and your practice deliver to your clients? Will it make a difference to you? Should it make a difference to you?\u00a0 What do you believe an ASIC shadow shop on this issue would find?<\/p>\n<p>We cannot ask this question without addressing the proposed Best Interest statute, which will enshrine into law the requirement that the financial adviser must act at all times in their clients&#8217; best interests.<\/p>\n<p>Notwithstanding the proposed Best Interest statute, sections of the financial services industry still remain concerned about the potential for conflicted advice in this area.<\/p>\n<p>(<em>We note that individually-advised policies sitting inside the superannuation choice and SMSF sectors will still allow commissions to be paid, but that there will be numerous circumstances under which superannuation-based life risk advice will not<\/em>).<\/p>\n<p>We invite your votes and your comments on this issue&#8230;<\/p>\n<p style=\"text-align: center\"><a href=\"https:\/\/riskinfo.com.au\/polls\/risk-commissions-best-interest-and-conflict-of-interest\" target=\"_self\"><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>Our latest\u00a0poll is based around the recommendation that ASIC should conduct a shadow shopping survey, post the implementation of the Future of Financial Advice (FoFA) reforms, to monitor whether conflicted advice on risk insurance outside superannuation will be delivered to consumers.<\/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":{"0":"post-14654","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-compliance-regulation","7":"category-polls","8":"category-remuneration"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/14654","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=14654"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/14654\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=14654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=14654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=14654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}