The IFAAA’s application to the Professional Services Councils (PSC) follows 18 months of work to bring the industry body in-line with the government agency’s “very guided instructions”, IFAAA president Daniel Brammall said in a statement.
“We now have an invitation from PSC to finalise an application for an Occupational Scheme. We are a small and nimble organisation and we have the full support and commitment of all our members,” he said.
“There is an exhaustive vetting process that applications need to get through, however we feel very confident the PSC will have no difficulty completing the assessment process promptly. This is a long overdue move to professionalise the industry.”
The industry association will also be renamed the Profession of Independent Financial Advisers (PIFA) as part of its “commitment to professionalising the industry”, Mr Brammall said.
Under the occupational scheme, PIFA members will be required to adhere to the group’s professional standards and compliance and risk management framework, as well as a code of ethical practice, the statement said.
“Each PIFA member already practices the IFAAA Gold Standard of Independence, and therefore most of the ‘heavy-lifting’ has been done to be able to qualify as a ‘statutory professional’,” Mr Brammall said.
“The missing piece for the IFAAA was the annual audit and verification process for each member, which is what the Occupational Scheme will achieve for PIFA and for the ultimate benefit of the Australian consumer.”
Surely their new name should be the “Anti insurance commissions association”.
Refusing to allow clients to pay for insurance advice and service by commissions, even when it is the client’s preference and in their best interest, is what truly differentiates IFAAA members.
Beg to differ.
Having a cash-flow plan in place with clients which allows clients to pay us for advice and save 25% on insurance premiums each and every year….
…rather than treating them like a transaction and watching them pay 25% more a year just so YOUR goals can be achieved.
That’s what differentiates us.
and the minimum $15,000 annual re-occurring advice fee.
Yep, used to offer both commission and fee for service insurance… Now offer only fee for service as I was surprised how well it worked and how clients are happy to pay a fee to save 30% each and every year… Just had to try it.
Until they cancel the fee in 3 years time but still expect you to do the admin changes and assist at claim time?