{"id":6247,"date":"2010-05-18T17:51:33","date_gmt":"2010-05-18T06:51:33","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=6247"},"modified":"2020-02-06T08:10:05","modified_gmt":"2020-02-05T21:10:05","slug":"risk-commissions-to-be-key-focus-of-government-discussions","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2010\/05\/18\/risk-commissions-to-be-key-focus-of-government-discussions\/","title":{"rendered":"Risk Commissions Key Focus of Government Discussions"},"content":{"rendered":"<p>Financial Services Minister, <strong>Chris Bowen<\/strong>, has confirmed that risk insurance commissions will\u00a0be one of the\u00a0key issues\u00a0as the Government consults with the industry on its\u00a0<em><a href=\"http:\/\/ministers.treasury.gov.au\/Ministers\/ceba\/Content\/pressreleases\/2010\/attachments\/036\/Future_of_Financial_Advice_Information_Pack.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Future of Financial Advice<\/a><\/em> reforms package.<\/p>\n<p><!--more-->Addressing an industry function in Sydney hosted by the AFA,\u00a0Mr Bowen said that full and open disclosure does not make up for fundamental conflicts of interest associated with\u00a0commissions, whether those conflicts are real or perceived.<\/p>\n<p>But on the question of whether commissions on risk products should be included when other commissions are banned in 2012, Mr Bowen told his audience of 430 advisers and\u00a0industry stakeholders\u00a0that he can see both sides of the argument.<\/p>\n<p>On one side is the issue of conflict of interest, but this is balanced against what Mr Bowen sees as real concerns about the potential\u00a0impact\u00a0the banning of risk commissions may have on Australia&#8217;s underinsurance dilemma.<\/p>\n<p>Following his speech, Mr Bowen reaffirmed\u00a0to reporters that he has a &#8220;&#8230;genuinely open mind&#8230;&#8221; about the future of risk insurance commissions, and this will be a key topic in the Government&#8217;s consultation process with the industry, announced earlier this week.<\/p>\n<p>Mr Bowen also remarked\u00a0he has received feedback that more people will now be seriously\u00a0considering a career as a financial adviser because commissions will be banned from 2012.<\/p>\n<p>Other key points made by Mr Bowen in relation to financial advice issues include:<\/p>\n<ul>\n<li>A clear indication that the Government will not be pursuing the\u00a0possibility of making financial advice tax deductible. \u00a0Mr Bowen said this was a very expensive measure that needs to be justified and that it is not something the Government is considering.<\/li>\n<li>There is a place for simple, one-issue\u00a0advice to be provided, particularly to superannuation fund members, rather than providing\u00a0all clients with a comprehensive, &#8216;holistic&#8217; advice solution.\u00a0 Mr Bowen is mindful of those mums and dads &#8220;&#8230; who only need simple, basic advice.&#8221;<\/li>\n<li>The Government is two thirds through its comprehensive superannuation reform package, already announcing measures it will adopt from the Henry Review and Ripoll Inquiry;\u00a0the final component being the measures that will stem from the Cooper Inquiry, to be handed down on 30 June 2010.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Financial Services Minister, Chris Bowen, has confirmed that risk insurance commissions will\u00a0be one of the\u00a0key issues\u00a0as the Government consults with the industry on its\u00a0Future of Financial Advice reforms package.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,270],"tags":[],"class_list":["post-6247","post","type-post","status-publish","format-standard","category-compliance-regulation","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/6247","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=6247"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/6247\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=6247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=6247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=6247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}