![\"ClearView](\"https:\/\/riskinfo.com.au\/news\/files\/2014\/03\/Simon-Swanson.jpg\")
<\/a>ClearView said it believes it is time for the industry to crack down on anti-competitive behaviour and to focus on driving innovation and improved customer outcomes. The life insurer used its submission to call for a ban on self-space fees and scaled volume bonuses, and to propose that the industry\u2019s default position should be for open architecture APLs.<\/p>\n
\u201cWe believe there is an irrefutable case that the default position should be for an open architecture for APLs so that advisers are not unduly restricted and customers can have confidence that their adviser is genuinely meeting their best interest obligations,\u201d said ClearView Managing Director, Simon Swanson<\/strong>.<\/p>\n \u201cShelf space fees are inequitable in the financial services industry and we believe they should be banned. A number of dealer groups require upfront payments, which start from around $100,000 and rise to over $300,000 per annum for life insurance products, to be placed on their APL. This means that customers are often recommended a product not because it\u2019s the most suitable and appropriate, but because of an insurance company\u2019s willingness and ability to pay shelf space fees.\u201d<\/p>\n ClearView warned against making major changes to the remuneration of financial advisers, as this would severely impact the profitability and sustainability of independently-owned advice practices, forcing many advisers into institutionally-aligned dealer groups with narrow APLs.<\/p>\n \u201cPoorly thought out, experimental changes to adviser remuneration could severely impact and strangle the independent financial planning community which is essential for the industry\u2019s vibrant long-term future,\u201d Mr Swanson said.<\/p>\n In addition, while the Trowbridge Interim Report did not identify the language used to describe adviser remuneration as a significant issue, Mr Swanson said it was time to abandon the words \u2018commission\u2019 and \u2018incentives\u2019. He said these words had negative connotations and drew attention away from the industry\u2019s real issues. Instead, Mr Swanson proposed they be replaced with alternative terms such as \u2018adviser service fee\u2019 or \u2018financial support\u2019.<\/p>\n \u201cWhenever change in attitudes are called for in society, changing language to focus on the desired outcome is always an important element. This would also potentially help advisers better explain their value proposition and remuneration structure without the discussion being overshadowed by the negativity surrounding the word \u2018commission\u2019,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":" A narrow approved product list is not best practice and should be viewed as an \u2018advice quality warning sign\u2019, ClearView has argued in its submission to the Life Insurance Advice Working Group (LIAWG).<\/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-28778","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\/28778","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=28778"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/28778\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=28778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=28778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=28778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}…experimental changes to adviser remuneration could severely impact and strangle the independent financial planning community<\/h6>\n