{"id":28389,"date":"2015-01-13T17:01:06","date_gmt":"2015-01-13T06:01:06","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=28389"},"modified":"2015-01-13T17:01:06","modified_gmt":"2015-01-13T06:01:06","slug":"commission-free-risk-advice-option-on-anz-radar","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2015\/01\/13\/commission-free-risk-advice-option-on-anz-radar\/","title":{"rendered":"Commission-Free Risk Advice Option on ANZ Radar"},"content":{"rendered":"

A recent Parliamentary Committee submission from the ANZ Bank suggests the wealth manager would support a fee-for-service life insurance advice environment.<\/span><\/p>\n

The submission was made in response to the Senate Economics Committee\u2019s Scrutiny of Financial Advice Inquiry, which is investigating the implications of the recent financial advice reforms.<\/p>\n

ANZ\u2019s submission specifically identified retail life insurance advice as an area in need of legislative reform, in order to prevent misconduct by financial advisers. It pointed to the steps that would need to be taken to arrive at \u2018a staged transition to fee for service\u2019, acknowledging that interim remuneration approaches should be implemented.<\/p>\n

\u2018With respect to life insurance, product changes could be made to improve customer protection outcomes, such as through a review of remuneration arrangements, premium structures and product design,\u2019 ANZ said in its submission.<\/p>\n

In arriving at a staged transition to fee for service, interim remuneration approaches should be implemented<\/h6>\n

\u2018In arriving at a staged transition to fee for service, interim remuneration approaches should be implemented and this will require consideration of issues such as the continuation, or quantum of, upfront commissions, level and hybrid commission structures, responsibility periods.\u2019<\/p>\n

The submission also highlighted that care needed to be taken so that any proposed reforms did not exacerbate the current underinsurance issues, encouraged more people to take up advice, and recognised an appropriate balance between consumer protections and fair reward for advisers\u2019 work.<\/p>\n

The ANZ submission acknowledged the findings of the recent Australian Securities and Investments Commission (ASIC) report into retail life insurance advice, which found that current remuneration structures are impacting on the quality of advice (see: ASIC Review<\/a>). It also noted that ASIC had suggested an industry-wide response would be needed to mitigate potential \u2018first mover\u2019 issues.<\/p>\n

\u2018While it is not yet clear whether industry consensus can be achieved in relation to, for example, issues such as appropriate remuneration arrangements for financial planners that provide life insurance advice, ANZ believes that there may be a case for a solution to be mandated in the absence of industry agreement,\u2019 the submission stated.<\/p>\n

\u2018Separate to this ANZ is examining ASIC recommendations that we can act on unilaterally e.g. ASIC\u2019s suggested review of the training and competency of advisers giving life insurance and increasing monitoring and supervision of advisers.\u2019<\/p>\n

Submissions to the Scrutiny of Financial Advice Inquiry have now closed, and the Committee is expected to issue its report by the first sitting day of July.<\/p>\n","protected":false},"excerpt":{"rendered":"

A recent Parliamentary Committee submission from the ANZ Bank suggests the wealth manager would support a fee-for-service life insurance advice environment.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,8,270],"tags":[],"class_list":["post-28389","post","type-post","status-publish","format-standard","category-company-news","category-compliance-regulation","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/28389","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\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=28389"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/28389\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=28389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=28389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=28389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}