Since launching its ‘transition to hybrid’ program in March 2014, 829 financial advisers have registered to join the initiative, naming sustainable business growth as the chief trigger.
Amien Sym, director of Western Australian firm Infuse Life, has signed on to the program, saying it came about at just the right time.
“Looking at where our business is going over the medium to long-term, sustainability is the main focus,” Mr Sym said.
“The decision to move to a hybrid commission structure allows us to increase recurring revenue over time and drive new business growth, so I can see why so many other advisers are following suit.”
AIA Australia CEO Damien Mu welcomed the growth figures and urged advisers to sign up before the closing date of 30 September.
“It’s great to see such a positive response to the program since its launch. Research we conducted with advisers highlighted their desire to move to hybrid and level commissions, but also the barriers to doing so.
“We’re confident that this program can help advisers increase the value of their business over time, so the time to sign up is now.”
All I want for Christmas this year is for individuals making statements to realise you! does not equal me or us or them or whoever. Generalisations in the manner of opposition politicians, industry funds and other detractors in an attempt to demonise all is curious. Attempting to cleanse the sole of demons past perhaps?
Are your clients unaware of what they pay you? Are you addicted to income you don’t do anything for? Do you not meet your clients expectations and not make them aware that they can turn off the payments if they wish? This is not my practice or experience.
The trouble with recurring income streams (much as we’d all love to have them) are that they are all-to-often predicated on uninformed consent. Those paying for the continuous commissions (i.e. the client from whose funds they are removed) are usually unaware of them and unaware how or if they can turn them off if expectations for service are not met.
This industry became addicted to commissions that are too often unearned, just like governments have become addicted to taxes from gambling or cigarettes and then, rather than acting in the best interest of (in our case the client, but also our industry, in the long term; for government the community it should protect) and so the imperative becomes to continue that income stream, regardless. I’ll be howled down for this (again!) but every fee paid by a client should be invoiced and actually agreed and paid by them. It’s the only professional way and the only ethical and transparent way forward.