{"id":29195,"date":"2015-03-31T14:57:56","date_gmt":"2015-03-31T03:57:56","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=29195"},"modified":"2015-04-01T07:36:59","modified_gmt":"2015-03-31T20:36:59","slug":"adviser-thumbs-down-to-trowbridge-reform-model","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2015\/03\/31\/adviser-thumbs-down-to-trowbridge-reform-model\/","title":{"rendered":"Adviser Thumbs-down to Trowbridge Reform Model"},"content":{"rendered":"<div id=\"polls-138\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>Will the Trowbridge Reform Model remuneration proposal (level commissions supplemented by an Initial Advice Payment) sustain a viable advice practice?<\/strong><\/div><div id=\"polls-138-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>No <small>(87%)<\/small><div class=\"pollbar\" style=\"width: 87%\" title=\"No (87% | 860 Votes)\"><\/div><\/li>\n\t\t<li>Yes <small>(8%)<\/small><div class=\"pollbar\" style=\"width: 8%\" title=\"Yes (8% | 80 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(5%)<\/small><div class=\"pollbar\" style=\"width: 5%\" title=\"Not sure (5% | 50 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_138_nonce\" name=\"wp-polls-nonce\" value=\"503b40ce6e\" \/>\n<\/div>\n\n<p>riskinfo readers, mostly financial advisers, have delivered a resounding &#8216;No&#8217; vote to John Trowbridge&#8217;s proposed Reform Model for future life insurance advice remuneration.<\/p>\n<p><!--more-->As we go to print, 84% of advisers have said they do not believe that an ongoing 20% flat commission, supplemented by a $1,200 Initial Advice Payment, will be sufficient to deliver a viable advice business to serve consumers. The remaining 16% of the many hundreds of votes we have received in our <a href=\"https:\/\/riskinfo.com.au\/news\/2015\/03\/30\/trowbridge-remuneration-proposal-adviser-verdict\/\">latest poll<\/a> are split evenly between support for the proposed <a href=\"https:\/\/riskinfo.com.au\/news\/2015\/03\/26\/20-flat-commissions-trowbridge\/\">Reform Model<\/a> and the &#8216;undecided&#8217; category.<\/p>\n<p>Summarising some consistent themes in the adviser responses to our poll question, we have been told:<\/p>\n<ul>\n<li>Existing legislation provides sufficient scope to deliver the desired outcome of quality advice for more Australians, while aligning the interests of all stakeholders, but the legislation needs to be enforced more effectively.<\/li>\n<li>A proportion of advisers will either exit the industry or stop delivering life insurance advice because it will not be economically viable.<\/li>\n<li>The Reform Model does not take into account additional business expenses, including office rent, PI and other liability insurances, office costs, motor vehicle etc&#8230;<\/li>\n<\/ul>\n<p>We&#8217;re keen to report any financial modelling that may have been undertaken so far, which supports the viability of an advice practice operating under the proposed Reform Model. And we&#8217;d like to see that modelling extend across all the different types of advice practices that exist, including risk-focussed and holistic advice firms, established and emerging businesses, vertically-aligned and independent practices, who service small, medium and large client bases, etc&#8230;<\/p>\n<p>In the meantime, it appears there will emerge little support from financial advisers for the Trowbridge Reform Model proposal.<\/p>\n<p>We&#8217;re also keen to explore whether, if the overarching message from advisers is that the proposed Reform Model will not work, then what will? Do advisers prefer to retain the status quo? Or do you generally support some degree of change, eg banning &#8216;upfronts&#8217; and operating in future with either hybrid or level commission? And if only flat commissions will be available in future, what is a level that would deliver a viable model for your business, while serving the interests of all stakeholders, especially the consumer?<\/p>\n<p>Tell us what you think, as we keep this poll open into next week&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>riskinfo readers, mostly financial advisers, have delivered a resounding &#8216;No&#8217; vote to John Trowbridge&#8217;s proposed Reform Model for future life insurance advice remuneration.<\/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":["post-29195","post","type-post","status-publish","format-standard","category-compliance-regulation","category-polls","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/29195","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=29195"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/29195\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=29195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=29195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=29195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}