{"id":31969,"date":"2015-12-15T20:57:26","date_gmt":"2015-12-15T10:57:26","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=31969"},"modified":"2015-12-16T06:05:23","modified_gmt":"2015-12-15T20:05:23","slug":"vertical-integration-will-end-because-of-institutional-behaviour","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2015\/12\/15\/vertical-integration-will-end-because-of-institutional-behaviour\/","title":{"rendered":"Vertical Integration Will End Because of Institutional Behaviour"},"content":{"rendered":"

Vertical integration will come to an end at the hands of the institutions which benefit from it the most due to adviser scandals and a realisation the model is not supported by advisers according to Synchron director Don Trapnell<\/strong>.<\/p>\n

\"Synchron<\/a>
Synchron Director, Don Trapnell<\/figcaption><\/figure>\n

Pointing to the recent decision by Suncorp to walk away from providing advice via Guardian and Suncorp Financial Planning, Trapnell said this was an obvious flag the vertically integrated model was no longer working for some groups.<\/p>\n

\u201cIt is worth noting however that according to the acting chief executive Suncorp Life Jeremy Robson, the decision was made to simplify its distribution model in line with its strategic priorities \u2018and in the best interests of advisers and consumers\u2019,\u201d Trapnell said.<\/p>\n

\u201cRead into this and it looks like it is an admission that it can\u2019t be made to work.\u201d<\/p>\n

He also claimed the more open Approved Product List (APL) for risk insurers required under the proposed Life Insurance Framework will remove the benefit of owning a planning group, which he described as \u201cbeing able to move product within their own licence\u201d.<\/p>\n

\u201cThis is a great development for consumers as they will now have more access to a greater range of products than ever before. But play this out even further, and will this be the force that finally loosens the grip of large financial services who have long had very limited insurance offerings on their APLs?,\u201d he said.<\/p>\n

He said these forces, as well as those created by vertically integrated groups themselves such as conflicts of interest, biased advice and poor consumer outcomes were more likely to bring an end to the model than external forces.<\/p>\n

\u201cThe key concerns on vertical integration have always focussed on conflicts of interest, biased advice and consumer outcomes \u2013 which through various Inquiries and Commissions and scandals, have captured the attention and understanding of government and regulator.\u201d<\/p>\n

\u201cRoadblocks along the way in the form of banking scandals, regulator imposed EU\u2019s, media scrutiny, and the entrepreneurial spirit of the financial services practitioners themselves, have made it difficult for the model to get too comfortable.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Vertical integration will come to an end at the hands of the institutions which benefit from it the most due to adviser scandals and a realisation the model is not supported by advisers according to Synchron director Don Trapnell.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,270],"tags":[],"class_list":["post-31969","post","type-post","status-publish","format-standard","category-dealer-groups","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/31969","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=31969"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/31969\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=31969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=31969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=31969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}