A spokesperson for the minister told Risk Adviser Mr Billson had been in talks with advisers, when asked whether the government is concerned the reforms might see the mass closure of risk advice businesses
“The minister has met with a number of independent financial planners regarding proposed changes in the financial advice space,” the spokesperson said.
“[Mr Billson] has shared these insights with the Assistant Treasurer to help inform the government’s response to the Financial Systems Inquiry.”
Following the release of the Life Insurance Framework, advisers raised concerns over their ability to continue operating their businesses.
Several members of the risk advice industry have subsequently been imploring the government and Mr Frydenberg to reconsider the reforms, particularly the proposed three-year clawback period.
Meanwhile, the AFA has said the association is trying to influence the specific details of the three-year clawback period so it does not adversely affect advisers.
“We are concerned that the three-year clawback not be used to shift an unreasonable burden from the institutions onto small business financial advisers that do the right thing,” AFA chief executive Brad Fox said.
The AFA recently launched a series of roadshows in every capital city across Australia to help advisers transition with the reforms.
However, the Association of Independently Owned Financial Professionals, led by executive director Peter Johnston, has refused to accept the proposals, making a last ditch effort to try and topple the reforms.
Launching a campaign on 24 August 2015, Mr Johnston urged all advisers to contact their members of parliament to put forward their views on the reforms.
“Now is an opportune time to commence an ’email bombardment’ of your local sitting Coalition member pointing out that these proposed changes are not in the best interests of consumers, the nation’s underinsurance dilemma and small business,” Mr Johnston wrote in a letter to AIOFP members.
AFA, weak as a kitten. D NOT ACCEPT 3 year clawback for advisers AFA! Your job is to work FOR us, not the insurers.
Mervin
Agree totally, the problem Brad and the President have never been on the Risk business side. They are so out of touch that they seem to be hunting with the hounds and running with the wolves. I am totally over the way the AFA have treated Risk Advisers. They are treating the people they represent with disrespect and total disdain. Like we are backwoodsmen. Its like they have this new way of conducting business that is “state of art” the latest and the greatest. Well let me tell you, people want a simple transaction where they pay a Premium for the advice which includes the product and the rest looks after itself.
I have tonight returned from an appointment and for the fourth time I have tested the water with existing clients and I ask them to tick a box and accept paying a service fee to implement advice for Risk Insurance. Each client said we have been a client for x years and you have always taken commission what’s this all about.
I can tell you it went down like a lead balloon. Oh, I did reduce the annual Premium by removing all commission. Funny that, did stuff all to assist the client to still like me. Fortunately I still have the clients
I did advise each client that what I was demonstrating this is what the future holds for clients, they could not believe a Liberal Government would dictate what we can
and can’t earn. Accountants, Lawyers and Engineering companies to name a few do not have their fees regulated similar to Mr Frydenberg’s push. Not one of those professions can deliver what we deliver when a tragic incident strikes a family. The accountant may have to wind up a business, doesn’t do it for nothing the Lawyer drags out the will to ensure they get more than their share. Risk advisers deliver. Yes we DELIVER and we do not charge for those final services. My little business since 2007 up this present day delivered $29million Dollars in Death, TPD Stand alone Trauma and Income protection claims. I am not blowing my trumpet here, I am not the only adviser, there are many who would have delivered much more. Not one of my clients or their families have ever refused a benefit because thought it was to much money. My self and my little team in our office have received some lovely letters thanking us for what we do. We don’t bill clients for these final services and we do not not let people down.
Peter Johnston has the right idea, every Risk Advisor must email our present Federal Government. This is the action Brad Fox should have implemented right from the start. Not go it alone thinking this new age way is the right way.
Brad this is the (I am sure) maybe the third AFA National Conference in 33 years I have missed and it will be the first time (I am sure) I will cease paying my fees to the AFA. We are the grass roots of the AFA Brad and Mrs President, (I am sorry I cannot recall your name) you have not represented Risk Advisers fairly nor demonstrated the value we bring to the table for Families, Business people, ASIC and Federal Government.
The AFA is still out of touch with what its members want. They do not want implementation plans they want the whole thing ditched.
Just a nonsense and there will be no life industry at 30% commission with the AFA sponsored clawback of 3 years to fix the AFA view of churning.
Lets just wait and see but this whole policy is one big disaster and the AFA got sucked in and spat out.