{"id":58140,"date":"2021-10-15T11:49:51","date_gmt":"2021-10-15T01:49:51","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=58140"},"modified":"2024-10-30T08:44:17","modified_gmt":"2024-10-29T22:44:17","slug":"synchron-questions-fsc-white-paper","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2021\/10\/15\/synchron-questions-fsc-white-paper\/","title":{"rendered":"Synchron Supports FSC White Paper – But Trust an Issue"},"content":{"rendered":"

While Synchron Director Don Trapnell<\/strong> says his company supports any moves to reduce the cost of advice and relieve the compliance burden, as outlined in an FSC White Paper on Financial Advice,<\/em> he says advisers are questioning why they should trust the FSC.<\/p>\n

A statement from Trapnell, responding to the launch of the FSC\u2019s White Paper, says\u00a0 the company would \u201c\u2026obviously support moves by any industry body, association, or group of advisers that would reduce the cost of advice for consumers, relieve the compliance burden on financial advisers and simplify the industry\u2019s regulatory framework.\u201d<\/p>\n

\"\"<\/a>
Don Trapnell… risk advisers have neither forgiven nor forgotten the circumstances which led to the implementation of the Life Insurance Framework reforms…<\/figcaption><\/figure>\n

Trapnell says many of the FSC\u2019s recommendations made sense \u2013 including calls to abolish the Safe Harbour steps of the Best Interests Duty; to trade Statements of Advice for consumer-focused \u2018Letters of Advice\u2019; to break the nexus between financial product and advice; and to afford greater recognition of prior learning (see: Landmark White Paper Blueprint…<\/a>).<\/p>\n

However, he says, \u201c\u2026and this is perhaps more of a problem than the FSC is willing to recognise, the question on the lips of many risk advisers is \u2013 why should we trust the FSC?\u201d<\/p>\n

Trapnell says risk advisers have neither forgiven nor forgotten the Life Insurance Framework, which he says dramatically and negatively impacted their businesses, and holds the FSC largely responsible for it:<\/p>\n

…We still believe LIF was predicated on a lie, a lie that a culture of churn existed amongst advisers\u2026<\/p><\/blockquote>\n

\u201cWe still believe LIF was predicated on a lie, a lie that a culture of churn existed amongst advisers when there was scant evidence of it,\u201d he says.<\/p>\n

He continues: \u201cIt was championed by the FSC whose members, to this day, are primarily fund managers, superannuation funds and life insurers. Advisers are right to question the FSC\u2019s motives.\u201d<\/p>\n

Trapnell also expressed disappointment that the White Paper did not recognise the need to separate risk advisers from financial planners, especially in relation to education and training.<\/p>\n

He noted that specialist risk advisers provide different services to financial planners. \u201cIt doesn\u2019t make sense for them to hold the same qualifications or have to commit to the same educational program.\u201d<\/p>\n

Trapnell added that the Shadow Minister for Financial Services and Superannuation, Stephen Jones<\/strong>, MP had recently recognised this point.<\/p>\n

Synchron says that when speaking at the AFA\u2019s Evolve Conference last month, Jones said FASEA should have recognised that not all advisers need to know every part of the qualification.<\/p>\n","protected":false},"excerpt":{"rendered":"

While Synchron Director Don Trapnell says his company supports any moves to reduce the cost of advice and relieve the compliance burden, as outlined in an FSC White Paper on Financial Advice, he says advisers are questioning why they should trust the FSC. A statement from Trapnell, responding to the launch of the FSC\u2019s White […]<\/p>\n","protected":false},"author":24,"featured_media":58155,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8,6],"tags":[],"class_list":["post-58140","post","type-post","status-publish","format-standard","has-post-thumbnail","category-associations","category-compliance-regulation","category-dealer-groups"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/58140","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\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=58140"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/58140\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/58155"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=58140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=58140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=58140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}