{"id":23439,"date":"2013-11-05T12:34:28","date_gmt":"2013-11-05T02:34:28","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=23439"},"modified":"2013-11-05T12:34:28","modified_gmt":"2013-11-05T02:34:28","slug":"adviser-response-to-churn-debate","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2013\/11\/05\/adviser-response-to-churn-debate\/","title":{"rendered":"Adviser Response to Churn Debate"},"content":{"rendered":"<div id=\"polls-107\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>Would the banning of upfront commissions on replacement business stop churning?<\/strong><\/div><div id=\"polls-107-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>No <small>(53%)<\/small><div class=\"pollbar\" style=\"width: 53%\" title=\"No (53% | 143 Votes)\"><\/div><\/li>\n\t\t<li>Partially <small>(33%)<\/small><div class=\"pollbar\" style=\"width: 33%\" title=\"Partially (33% | 89 Votes)\"><\/div><\/li>\n\t\t<li>Yes <small>(12%)<\/small><div class=\"pollbar\" style=\"width: 12%\" title=\"Yes (12% | 33 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(3%)<\/small><div class=\"pollbar\" style=\"width: 3%\" title=\"Not sure (3% | 7 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_107_nonce\" name=\"wp-polls-nonce\" value=\"8b30fe3c47\" \/>\n<\/div>\n\n<p>Our latest poll\u00a0recognises the strong adviser\u00a0reaction to our recent article on whether the removal of upfront commissions would have an impact on policy churning.<\/p>\n<p><!--more-->Many advisers weighed in with their opinions in response to\u00a0a view expressed by <a href=\"http:\/\/www.thefoldlegal.com.au\/\" target=\"_blank\">The Fold Legal&#8217;s<\/a> <strong>Claire Wivell Plater<\/strong> that, if an adviser is restricted to using only hybrid or level commissions for replacement business, this does not mean that\u00a0churning ceases\u00a0to be a problem (see <a href=\"https:\/\/riskinfo.com.au\/news\/2013\/10\/29\/hybrid-level-commission-not-the-answer-to-churn\/\">Hybrid, Level Commission Not the Answer to Churn<\/a>).<\/p>\n<p>Ms Wivell Plater contends that an effective ban on upfront commissions will not stop churning because the availability of hybrid or level commission would still offer some advisers\u00a0sufficient\u00a0financial incentive for them to consider\u00a0switching\/replacing their\u00a0client&#8217;s existing life insurance policy.<\/p>\n<p>These\u00a0comments\u00a0were made within the context of Ms Wivell Plater discussing\u00a0what she believes is a\u00a0determination on the part of ASIC to work towards the removal of all conflicted remuneration from the financial services sector, which includes the future banning of all life insurance commissions.\u00a0 To this end, the regulator is currently undertaking a significant project in relation to churning (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2013\/10\/14\/asic-commences-churn-inquiry\/\">ASIC Commences Churn Inquiry<\/a>), which in turn prompted the comments from Ms Wivell Plater.<\/p>\n<p>This debate continues to generate much discussion from advisers and other industry contributors and, as always, we seek your views on this latest question&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our latest poll\u00a0recognises the strong adviser\u00a0reaction to our recent article on whether the removal of upfront commissions would have an impact on policy churning.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,270],"tags":[],"class_list":["post-23439","post","type-post","status-publish","format-standard","category-polls","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/23439","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=23439"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/23439\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=23439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=23439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=23439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}