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So In order to Understand this, as a single adviser operating with a dealer group, will I have to fund the $935 + a percentage of the Annual Fee, if handed down by the Dealer Group ?
Miachel has very valid points . You are the one who needs a reality check
I think you are missing the point. Most of us are being asked to spend thousands of $ ($30k-$40k if we are talking about a Masters) and not learn anything we don't already know. If these qualifications would actually make me more knowledgeable I'm all for it, but they won't!
The labor party is totally out of touch with the impact that their class warfare policies will have on renters . Rents will go up and actual rental properties on the market will decrease, as the property market undertakes a severe correction . Unfortunately , both parties have no idea of the realities of investment which is proven by the over the top draconian education standards that FASEA intends to implement . A pox on both parties as they manage by hook or by crook to send this country into its first recession in 28 years
I'm God not Santa...i can't do everything
If the Best Interests Duty had been extended to Freedom Insurance and the scammers at other evil companies such as Real Insurance or Insurance Line then 100% of their insurance sales would fail. I am amazed that ASIC even allowed these companies to exist in the first place.
Clients would be better served getting the money paid to these "insurers" and burning it than paying their premiums. At least that way they might save some money instead of relying on an insurance policy which was never designed to pay out.
General advice in person, or over the phone must be banned for all financial products otherwise these companies will continue to steal money from the aussie battlers who can least afford it.
One set of rules and one set of educational standards for all people in the financial services industry.
Please explain why ASIC and the Government see it as ok for a backpacker from the UK with 2 hours training can sell a Life Insurance policy to a person over the phone, or in person, without the need to Know Your Client, without the need for a Statement of Advice, without the need to adhere to the Best Interests Duty, without the need to keep up on CPD points, without the need to have a degree as well as a Diploma and the INTERNATIONALLY RECOGNISED CFP. All whilst getting paid the same commission as an adviser who has to waste at least a day to get to the same result as the backpacker.
I am thinking its better being less educated and poorly trained if you want to actually help clients instead of spending your life doing paperwork which is never read by anyone other than compliance managers
Terrific Captain Obvious. Most 'advisers' (as opposed to product salesmen) have been taking this approach to insurance for at least 15 years. It does not say a great deal about Met Life that they have only just discovered this now.
E Myth is a fantastic book - and I suggest reading the follow up to this if you haven't already.
The problem that advice businesses have is that a large portion of them are built by Financial Advisers who are "technicians" and not true business owners. They want to be Advisers and set up the infrastructure to be great Financial Advisers. This isn't a natural state for a business to be transitioned or "sold". The pricing of financial advice businesses is falling, and it's a reflection of the fact that most books aren't businesses - it's just a portfolio of clients who have a relationship with an Adviser. The client book is worth next to nothing, particular since abolishing a large portion of on-going commissions and requiring opt-in.
A business where people move up into a CEO type role is actually more likely to be operated like a proper business and set themselves up for sale than the traditional model where the owner of the business is an Adviser just creating a job for themselves.
it's "there" , not "Their"
Dear God, please let her be someone with enough sense, experience and intestinal fortitude to take on the ISA and expose them for the shonky practises, forcibly remove all union involvement and cash stripping they do under the guise of fees, and level out the playing field so the ISA have to disclose and operate exactly as the rest of the industry is expected, at all levels throughout their entire vertically integrated self interested conflicted structure. Amen
Based on feedback from numerous BDMs - new retail business down 30% would be closer to the mark Old Risky. With further decreases likely due to LIF kicking in to phase 2 (77/22) on 01/01/2019. IMO unless advisers are writing minimum comm/fees of >$5k per case then the rewards are just not worth the risk esp with 2yr clawback. We have been slowly transitioning our remuneration structure to FFS for insurance advice but the majority of clients have requested comm only. Even those clients who see the value in our work and have the financial means to pay FFS prefer comms. Looks like there will be a large cohort of individuals who will have to make do with non-underwritten cover through industry funds or be under-insured. I don't see this ending well for the government esp if the well documented under-insurance problem comes to fruition.
I think there has already been plenty of job losses. My respective BDM teams/support are a lot leaner across the board..
Steve Prenderville is well placed to advise on exit plans. Google: Lanyon Prenderville. An embarrassing exit.
Try 30-40% Old Risky. A lot of BDMs are trying to play it down but the honest ones are telling the truth and the intelligent ones are worried about their future jobs once it drops further as the commission rates do. Writing new business isn't profitable anymore.
I could not agree more. I am simply disgusted by MLC. Last month they cut premiums on new business by 10% and this month (yes just before Christmas!) they are writing to existing customers with a 10% increase on premiums. And MLC are not alone in doing this.
These FSC member grubs are actually trying to encourage a churn issue that was not there in the first place before the LIF with these tactics.
Can IFA ask the FSC to explain what they think of this mongrel practice?
And they want to call themselves a profession??? Financial advisers need to parctice what they preach....
How can MLC increase all its base premiums, just before Christmas, and just after this RC. They are going to slug all our advised clients, but the group insurance which is the main loss maker, will be untouched? Am I the only one that thinks they are totally greedy buggers that are cutting our noses off to keep the non underwritten group easy money? Im sick of the advised clients taking on all this risk, when the insurance companies just offer cover to group insurance clients that aren't even seperated into smokers and non smokers risk pools.
If we refer to the E Myth, business owners should be doing ongoing due diligence to prepare their business for sale, whether or not they wish to sell. Let's face it succession is the business we are in, yet only 12%, have the plan in place. It gives new meaning to "the plumber's leaking tap".
Really? How long was his sentence?
I've been told a figure at present of 20% to 25% with a significant drop in the past quarter due to people just stopping new business on the basis it isn't worth the compliance risk.