{"id":6090,"date":"2010-05-05T10:42:46","date_gmt":"2010-05-04T23:42:46","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=6090"},"modified":"2020-02-06T08:10:06","modified_gmt":"2020-02-05T21:10:06","slug":"unions-banks-in-adviser-firing-line","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2010\/05\/05\/unions-banks-in-adviser-firing-line\/","title":{"rendered":"Unions, Banks in Adviser Firing Line"},"content":{"rendered":"

\u00a0\"Vote<\/a><\/p>\n

Many advisers feel they are being backed into a corner by unions and banks following the release last week of the Government’s ‘Future of Financial Advice’ <\/a>reform package.<\/p>\n

Responding to our latest poll question:<\/p>\n

Do you support the Government’s ‘Future of Financial Advice’ reform package?<\/em><\/p>\n

86% of advisers have said they do not support the reforms or only support some of the elements (45% reject the reforms outright and 41% support some elements).<\/p>\n

Based on adviser comments we have received, we sense that those only supporting some elements of the reforms are saying\u00a0they agree with the intent of most of the reform package\u00a0but are against the banning of commissions.<\/p>\n

There appears to be growing frustration amongst many advisers that the ‘big end of town’\u00a0has got\u00a0its way and that instead of the reforms leading to a more transparent, independent structure where the client’s interests are paramount and financial advice will become universally accessible, it will instead lead to an advice agenda where union and bank clients will be channelled into the products they manufacture and control:<\/p>\n

[The Government] have been wrongly influenced by industry funds…<\/em><\/p>\n

The problem is not remuneration by commission; the real problem is product supplier\u2019s ongoing control of the advice industry<\/em><\/p>\n

Product control of advice ensures that advice will remain incidental to product sales and not be universally available<\/em><\/p>\n

Expansion of intra fund advice plays into Industry Funds and large institutions hands<\/em><\/p>\n

The advisers are dead right. Every bank will now simply hand their clients through to the product provider that they own<\/em><\/p>\n

On the banning of commissions:<\/p>\n

… there will be a tendency in the future for advisers to concentrate only on the middle and higher income earners<\/h6>\n

I\u00a0 have a concern that there will be a tendency in the future for advisers to concentrate only on the middle and higher income earners and so for many people who need advice will possibly miss out<\/em><\/p>\n

…the most conflicted remuneration structures of all are salaries paid to advisers employed by product suppliers to push their products<\/em><\/p>\n

The mum and dad businesses and the lower income earners who need the best advice will in most cases be unable to pay for it<\/em><\/p>\n

I cannot work out a formula to charge fees with risk insurance and cannot understand how the government or financial advisers can! The commission I receive, covers setting up the cover and ongoing service including Claim work with no extra fee\/cost to client<\/em><\/p>\n

As a Risk specialist the impact on my business is minimal at this stage, however goodbye to the Mum & Dad clients & small business owners if Risk payments are removed as well<\/em><\/p>\n

But will this generally negative response to the Government’s financial advice reforms package be seen over time to be an over-reaction?<\/p>\n

Will this reform package simply be another step in progressing the financial advice industry into one that is perceived by consumers to be a profession?<\/p>\n

We want to know how you see the future of financial advice in the coming years.\u00a0 Our poll remains open …<\/p>\n

\"Vote<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Many advisers feel they are being backed into a corner by unions and banks following the release last week of the Government’s ‘Future of Financial Advice’ reform package.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,270],"tags":[],"class_list":{"0":"post-6090","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-polls","7":"category-remuneration"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/6090","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=6090"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/6090\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=6090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=6090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=6090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}