{"id":60585,"date":"2022-04-26T18:07:25","date_gmt":"2022-04-26T07:07:25","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=60585"},"modified":"2025-03-14T12:02:27","modified_gmt":"2025-03-14T01:02:27","slug":"alp-updates-position-on-risk-commissions","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/04\/26\/alp-updates-position-on-risk-commissions\/","title":{"rendered":"ALP Updates Position on Risk Commissions"},"content":{"rendered":"
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The future of risk commissions was highlighted this week following comments made by the shadow minister for financial services. Interestingly, the shadow minister’s comments around the future of risk commissions were not included in his prepared notes that were distributed to media ahead of his speech\u2026<\/h3>\n<\/div>\n<\/div>\n

Shadow financial services minister, Stephen Jones<\/strong>, has confirmed Labor\u2019s approach towards retaining risk commissions has changed as a result of deep engagement with the financial services sector.<\/p>\n

The shadow minister took the opportunity at a Financial Services Council<\/a> event in Sydney this week to emphasise that a Labor Government would be committed to working with the FSC and other industry stakeholders when issues emerge in the sector. He said that, just as there had been better results and better legislation outcomes over the last four years by Labor deeply engaging with the industry – by consulting and by listening – if the ALP forms Government it will get better results as legislators by doing exactly the same.<\/p>\n

To illustrate his point, Jones referenced his own \u2018journey\u2019 in terms of his stance on retaining life insurance commissions.<\/p>\n

I concede actually that there are more sides to this story than I originally thought…<\/p><\/blockquote>\n

He told his audience of his experience over the last four years when addressing a problem (conflicted remuneration) from a point of view of principle or theory “…and by deep engagement with the sector, I concede actually that there are more sides to this story than I originally thought.\u201d<\/p>\n

Jones said he spoke at a similar event about three years ago in the immediate aftermath of the Financial Services Royal Commission: \u201cWe spoke about the issue of commissions in the sale of financial products – particularly life insurance products. I was starting from a position that was espoused by [Kenneth] Hayne and I can honestly say that after a deep engagement within the industry I see that it\u2019s not as simple as that.”<\/p>\n

Jones signalled his softened approach towards risk commissions in September last year at the AFA 2021 Evolve Conference, at which he noted that following a number of \u201c\u2026good, good discussions with risk advisers over the last 12 to 18 months\u201d, those conversations had challenged some of his initial views in this area. He also reflected at the time on the importance of balancing the need for consumer protection with the need to retain a financially-viable financial advice industry (see: ALP Softens Position on Future of Risk Commissions<\/a>).<\/p>\n

This week’s comments made by the Shadow minister follow statements made last week by FSC CEO, Blake Briggs<\/strong>, in which he re-affirmed the FSC would advocating to retain life insurance commissions as one element in its agenda to drive down the cost of financial advice (see: FSC Reinforces Support for Risk Commissions<\/a>).<\/p>\n

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Shadow Financial Services Minister, Stephen Jones, sharing a Q&A with FSC chief, Blake Briggs in Sydney this week …deep engagement with industry stakeholders has helped to change Jones’ approach towards the question of retaining risk commissions<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

The future of risk commissions was highlighted this week following comments made by the shadow minister for financial services. Interestingly, the shadow minister’s comments around the future of risk commissions were not included in his prepared notes that were distributed to media ahead of his speech\u2026 Shadow financial services minister, Stephen Jones, has confirmed Labor\u2019s […]<\/p>\n","protected":false},"author":3,"featured_media":60598,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282,8,270,8291],"tags":[],"class_list":["post-60585","post","type-post","status-publish","format-standard","has-post-thumbnail","category-associations","category-compliance-regulation","category-remuneration","category-story-of-the-week"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/60585","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=60585"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/60585\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/60598"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=60585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=60585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=60585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}