{"id":36486,"date":"2017-03-28T17:09:46","date_gmt":"2017-03-28T06:09:46","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=36486"},"modified":"2017-03-29T06:52:59","modified_gmt":"2017-03-28T19:52:59","slug":"one-in-two-risk-advice-businesses-to-change","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/03\/28\/one-in-two-risk-advice-businesses-to-change\/","title":{"rendered":"One in Two Risk Advice Businesses to Change"},"content":{"rendered":"<div id=\"polls-178\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>Will you be making changes to your business model to accommodate the remuneration changes contained in the Life Insurance Framework Reforms?<\/strong><\/div><div id=\"polls-178-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>Yes <small>(53%)<\/small><div class=\"pollbar\" style=\"width: 53%\" title=\"Yes (53% | 95 Votes)\"><\/div><\/li>\n\t\t<li>No <small>(33%)<\/small><div class=\"pollbar\" style=\"width: 33%\" title=\"No (33% | 59 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(13%)<\/small><div class=\"pollbar\" style=\"width: 13%\" title=\"Not sure (13% | 24 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_178_nonce\" name=\"wp-polls-nonce\" value=\"a177689af4\" \/>\n<\/div>\n\n<p>Our latest poll result suggests around one in two risk-focused advice practices will be making changes to their business model to accommodate the advent of the Life Insurance Framework reforms.<\/p>\n<p><!--more-->In a poll where the risk-focused advice business is the centre of attention, this 50\/50 outcome reaffirms, amongst other take-outs, that not all risk-focused advice practices are structured the same way. In fact, we&#8217;ve found over time that all advice businesses are unique and that a myriad of different business models exist &#8211; some of which, it seems, have more work in front of them than other risk-focused advice business models in order to cater to the LIF reform imperatives.<\/p>\n<p>Adviser comments to date mention a number of potential adjustments that they believe may occur, such as the need to differentiate in future the clients for whom the business can afford to provide personal advice:<\/p>\n<p style=\"padding-left: 30px\"><em>&#8220;Under LIF, Advisers will have no choice but to provide general advice only for &#8220;small&#8221; clients (clients with premiums under $5k pa)&#8221;<\/em><\/p>\n<p>The same adviser added (within the context of more legal firms becoming involved in representing policy holders at claim time):<\/p>\n<p style=\"padding-left: 30px\"><em>&#8220;Maybe advisers should build a claims handling fee into their contract.&#8221;<\/em><\/p>\n<p>Elsewhere, well-respected WA risk adviser, <strong>Mark Rando<\/strong>, has written in the current edition of Riskinfo eMagazine about his strategy of charging a fee for the provision of his Statements of Advice, which also includes a commitment from the client to make up any remuneration shortfall to the business as a result of clawback provisions (see: <a href=\"http:\/\/magazine.riskinfo.com.au\/29\/managing-claw-back\/#.WNn6N2clGUk\" target=\"_blank\">Managing Clawback<\/a>).<\/p>\n<p>We also referred last week to another article in which we reported growing evidence that more advisers are charging fees for risk advice (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2017\/03\/20\/advisers-report-higher-costs-and-lower-incomes\/\" target=\"_blank\">More Advisers Charging Fees&#8230;<\/a>), but the jury is still out on the extent to which this applies to risk-only and\/or risk-focused business models.<\/p>\n<p>If not already here, change is just around the corner for many of Australia&#8217;s risk-focused advice businesses, as indicated by the 52% at time of writing who are saying their business is about to change. Is this you? Or are you one of the 36% who say you won&#8217;t be changing or the one in eight (12%) who are yet to decide?<\/p>\n<p>Our poll remains open for another week and we welcome your thoughts on this question&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our latest poll result suggests around one in two risk-focused advice practices will be making changes to their business model to accommodate the advent of the Life Insurance Framework reforms.<\/p>\n","protected":false},"author":3,"featured_media":36542,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[4247],"class_list":["post-36486","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-polls","category-remuneration","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36486","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=36486"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/36542"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=36486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=36486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=36486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}