Speaking at a media briefing at the AFA 2015 National Adviser Conference in Cairns yesterday, AFA national president Deborah Kent said that all stakeholders who were previously involved in the framework were being brought back to the table.
“Minister O’Dwyer has made it clear that she is happy to collaborate on what should be the … definitions of clawback, so I think now is our time to try and get clarity around that for our members – that’s the most important thing,” she said.
“We know that Kelly has clearly stated to us that the framework is there to work with and she’s happy to work to get clarification around a number of issues. So going in there we know that we’ll at least be negotiating around the detail.”
Transition arrangements would also be discussed, Ms Kent said.
“I know certainly the minister said that July [2016] is the start date. If there is any way we can move around that, we’ll find out on Wednesday,” she said.
“The points will be around the detail. She will probably let us know where she’s at and she does want to work with the groups to get the detail right. She does understand that there are some concerns.”
The AFA is going to meet with Minister O’Dwyer against a backdrop of some concern in the advice industry, although Ms Kent said the AFA AGM on Monday allowed many advisers to vent their frustrations.
“The AGM I believe went well. Certainly we know that there are a lot of advisers out there that want to get clarity about what’s happening and we understand that and we do empathise with the issues that some people are going to face in their businesses,” she said.
“So yesterday we let them talk to us about that. We accepted conversation we suggested that we are walking together the AFA is a collaborative association and certainly we need to be doing working together on this. Everyone has the right to voice their opinions and they certainly were heard.”
Ms Kent said she believes advisers are becoming accustomed to the concept of the LIF.
“The general feeling around the place is that generally advisers are [appeased],” she said. “We’ve given them clear explanation over the whole process, clear explanation for the next stage. The feedback I’m getting is that they’re fine and they know we’re doing the job for them.”
Anyone see the irony of the first paragraph here….
“A cohort of representatives” …. not a cohort of actual advisers.
Hope Kelly is reading her emails!
“Ms Kent said she believes advisers are becoming accustomed to the concept of the LIF…”
Yes we are becoming accustomed to the thoughts of changing vocation.
If only leaving clients behind were an easy decision.
A combination of 3 years of uncertain income along with a massive reduction in new business income IS NOT CHANGE; IT IS A RECIPE FOR DISASTER. The messgae needs to be loud and clear, the proposals are vicious and spiteful, a more fair and reasonable outcome needs to be reached.
Deborah just agree with everything she says, similar to the approach that the AFA used with Josh Frydenberg and look where that got us. Say nothing and just cop it sweet then tell all members after the meeting”We tried our best…”
I hope that the minister can see at some point that these reforms are 100% anti small business. The vast majority of the advisers that are represented by the AFA and FPA are institutionally aligned and these reforms are 100% what the institutions wanted. We are a small to medium advice firm running our own AFSL. Almost two years ago we switched to a Hybrid model. We have a lapse rate of less that 8% and a client base of low to medium income earners. If we are forced to charge people up front for our services there are a lot of people who will choose to bypass personnel Risk cover all together. For the life of me I cant understand why changes that were proposed by the main abusers of the system being banks and institutionally aligned advisers are being accepted. If you go to CBA you are offered Comminsure, ANZ Onepath, NAB MLC and Westpac BT. For every single client we compare almost 20 different institutions that can vary wildly in price, cover and loadings. This will be lost to many consumers under these new rules and many small to medium non aligned advice business’s as well as consumers will be worse off as a consequence. If these reforms go through as stated the minister for small business should change her title to the minister for extremely large business. There is no doubt that the AFA and the FPA should merge and change their name to The Bankers and Institutionally Funded Financial Advice Association! IFFAA
Can someone please tell me what problem the LIF addresses that required government intervention? The only issue it addresses as far as I can work out is life company profitability.