{"id":40958,"date":"2018-05-23T00:00:03","date_gmt":"2018-05-22T14:00:03","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=40958"},"modified":"2018-05-23T06:55:59","modified_gmt":"2018-05-22T20:55:59","slug":"the-future-of-risk-commissions-2","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2018\/05\/23\/the-future-of-risk-commissions-2\/","title":{"rendered":"The Future of Risk Commissions"},"content":{"rendered":"<div id=\"polls-201\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>Could your advice practice survive and prosper if you were forced to charge a fee for life insurance advice?<\/strong><\/div><div id=\"polls-201-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>No <small>(82%)<\/small><div class=\"pollbar\" style=\"width: 82%\" title=\"No (82% | 616 Votes)\"><\/div><\/li>\n\t\t<li>Yes <small>(9%)<\/small><div class=\"pollbar\" style=\"width: 9%\" title=\"Yes (9% | 69 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(8%)<\/small><div class=\"pollbar\" style=\"width: 8%\" title=\"Not sure (8% | 63 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_201_nonce\" name=\"wp-polls-nonce\" value=\"b9dc95e521\" \/>\n<\/div>\n\n<p>Our latest poll asks you to reflect on ASIC&#8217;s open support for the complete removal of all life insurance commissions, and what this would mean to your business.<\/p>\n<p><!--more-->In a recent speech, ASIC&#8217;s new Chair, <strong>James Shipton<\/strong>, noted that the best way to deal with some conflicts was not to manage or disclose them, but to remove them altogether: \u201cThis is an option that ASIC favours in relation to conflicted payments in advice,&#8221; said Shipton (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2018\/05\/18\/removal-of-commissions-would-end-conflicts-of-interest\/\" target=\"_blank\" rel=\"noopener\">Removal of Commissions Would End Conflicts of Interest<\/a>).<\/p>\n<blockquote><p>&#8230;the best way to deal with some conflicts was not to manage or disclose them, but to remove them altogether<\/p><\/blockquote>\n<p>Shipton&#8217;s comments were made in a current-day environment that is experiencing the transition period to a controlled 60\/20 commission structure under the Life Insurance Framework reforms and the fallout from the Banking Royal Commission. In this environment, Riskinfo has spoken with a growing number of advisers who believe &#8216;the writing is on the wall&#8217; when it comes to the future of commissions, and who will therefore not be surprised by these comments made by the ASIC Chair.<\/p>\n<p>We asked you this same question in November 2012. At that time, the big issue was around the intention of the Accounting Professional and Ethical Standards (APES) Board to apply a blanket ban on accountants from receiving any form of life insurance commissions.<\/p>\n<p>Back in 2012, advisers painted a gloomy picture of the future of their business if they weren&#8217;t able to be remunerated in all or in part, by commissions &#8230;and we wonder whether much has changed since then.<\/p>\n<p>Certainly, there has been more debate over the last five-and-a-half years about the potential to charge fees for life insurance advice, and there are a number of advice businesses doing just that. However, while these business charge fees for elements of their advice processes and services (eg provision of Statements of Advice and\/or charging fees for claims services) most still supplement those fees with commissions, both upfront and ongoing.<\/p>\n<p>It&#8217;s over to you to have your say on this critical issue, which may have far-reaching consequences for many, and we&#8217;ll report back next week&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our latest poll asks you to reflect on ASIC&#8217;s open support for the complete removal of all life insurance commissions, and what this would mean to your business.<\/p>\n","protected":false},"author":3,"featured_media":40966,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[4247],"class_list":["post-40958","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\/40958","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=40958"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/40958\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/40966"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=40958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=40958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=40958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}