{"id":17987,"date":"2012-11-12T18:06:55","date_gmt":"2012-11-12T08:06:55","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=17987"},"modified":"2022-11-09T01:56:47","modified_gmt":"2022-11-08T15:56:47","slug":"synchron-fans-flame-of-churning-debate","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2012\/11\/12\/synchron-fans-flame-of-churning-debate\/","title":{"rendered":"Synchron Fans Flame of Churning Debate"},"content":{"rendered":"<p>Synchron Director <strong>Don Trapnell<\/strong> has continued to voice his opposition to the Financial Services Council&#8217;s (FSC) proposed measures to address churning, labelling a uniform responsibility period &#8216;anti-competitive&#8217;.<\/p>\n<p><!--more-->The <a href=\"https:\/\/riskinfo.com.au\/news\/2012\/08\/03\/fsc-backs-down-on-churning-policy\/\" target=\"_blank\" rel=\"noopener\">FSC&#8217;s Insurance Framework<\/a> proposes a three year responsibility period, with a commission claw-back provision to apply as follows:<\/p>\n<ul>\n<li>100% of commission in the first year<\/li>\n<li>75% in the second year<\/li>\n<li>50% in the third year<\/li>\n<\/ul>\n<p>According to Mr Trapnell, the policy is anti-competitive, and as a result does not have the support of the Synchron group.<\/p>\n<blockquote><p>&#8230;competitive forces should drive adviser remuneration models<\/p><\/blockquote>\n<p>He argued that competitive forces should drive adviser remuneration models, citing past changes to responsibility periods made by the industry.<\/p>\n<p>&#8220;In the 1970s, advisers had a three-year responsibility period; by the 1980s, due to competitive pressures, this moved to a two-year responsibility. \u00a0By mid-1980, again as a result of competitive pressures, this moved to a one-year period.\u00a0 These changes were the result of a competitive market at work,&#8221; he said.<\/p>\n<p>Mr Trapnell has previously indicated Synchron would consider making a complaint to the Australian Competition and Consumer Commission (ACCC) about the policy, if it were adopted by insurers.<\/p>\n<p>&#8220;Life companies will only gain the respect of Synchron when they adopt processes which are designed to prevent churned cases coming towards them as opposed to penalising advisers for lapsed cases going away from them,&#8221; he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synchron Director Don Trapnell has continued to voice his opposition to the Financial Services Council&#8217;s (FSC) proposed measures to address churning, labelling a uniform responsibility period &#8216;anti-competitive&#8217;.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,6,270],"tags":[],"class_list":["post-17987","post","type-post","status-publish","format-standard","category-compliance-regulation","category-dealer-groups","category-remuneration","headers-new"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/17987","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=17987"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/17987\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=17987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=17987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=17987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}