{"id":60475,"date":"2022-04-19T17:35:12","date_gmt":"2022-04-19T06:35:12","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=60475"},"modified":"2024-10-30T08:43:45","modified_gmt":"2024-10-29T22:43:45","slug":"fsc-reinforces-support-for-risk-commissions","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/04\/19\/fsc-reinforces-support-for-risk-commissions\/","title":{"rendered":"FSC Reinforces Support for Risk Commissions"},"content":{"rendered":"

The Financial Services Council has confirmed it will be advocating to retain life insurance commissions as one element in its agenda to drive down the cost of financial advice.<\/p>\n

With Treasury’s 2022 Quality of Advice review in mind, newly-confirmed FSC Chief, Blake Briggs<\/strong>, noted this week that maintaining the remuneration limits brought in under the Life Insurance Framework reforms, together with other reforms designed to bring down the cost of advice is a key outcome of the Quality of Advice Review the FSC will be advocating for. Briggs says the retention of risk commissions (at their present level), in tandem with other sector reforms, “…will ensure the current high cost of financial advice is no longer a barrier to Australian\u2019s having appropriate life insurance cover.”<\/p>\n

\"\"<\/a>
New FSC CEO, Blake Briggs …advocating to retain risk commissions – at current caps<\/figcaption><\/figure>\n

…maximum commission caps and mandatory clawback within the first two years of a policy have improved consumer outcomes<\/p><\/blockquote>\n

The FSC’s position is built around a rationale in which it believes maximum commission caps and mandatory clawback within the first two years of a policy have improved consumer outcomes “…by reducing the misaligned incentives and inappropriate policy replacement disclosed in ASIC Report 413, its Review of Retail Life Insurance Advice” (see: ASIC Life Insurance Advice Review – Unacceptable Level of Failure<\/a>).<\/p>\n

Briggs says the FSC also believes that Life Insurance Framework reforms allow upfront and ongoing commissions to be paid to advisers “…at a level that appropriately reimburses financial advisers for the significant amount of work undertaken at commencement and throughout the life of the policy.”<\/p>\n

The Quality of Advice Review Report is due to be submitted by Treasury to the Government of the day by 16 December 2022 (see: Quality of Advice review – Issues Paper Released<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"

The Financial Services Council has confirmed it will be advocating to retain life insurance commissions as one element in its agenda to drive down the cost of financial advice. With Treasury’s 2022 Quality of Advice review in mind, newly-confirmed FSC Chief, Blake Briggs, noted this week that maintaining the remuneration limits brought in under the […]<\/p>\n","protected":false},"author":3,"featured_media":60502,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8,270],"tags":[],"class_list":["post-60475","post","type-post","status-publish","format-standard","has-post-thumbnail","category-associations","category-compliance-regulation","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/60475","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=60475"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/60475\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/60502"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=60475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=60475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=60475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}