NEOS Life said it first came out in support of risk commissions immediately following the release of the final report of the Hayne royal commission.
In response to its recommendation of gradually reducing risk commissions to zero, managing director Brett Yardley said it’s important for the industry to demonstrate that the Life Insurance Framework delivers a high-quality financial advice industry that’s good for consumers.
“We now have another two to three years to demonstrate that the LIF changes are sufficient to address the concerns of regulators,” he said.
“One way of doing that is by making sure the amazing stories of care, compassion and support that we hear each day about the services financial advisers provide are given a public voice.”
Mr Yardley said NEOS Life is drawing up its lobbying strategy to engage regulators and government on the importance of ensuring risk commissions remain.
“As a business solely focused on the advised segment of the market, we want to ensure that we’re supporting financial advisers with more than just words. After all, we’re dependent on the ongoing success of this market just as much as they are,” Mr Yardley said.
“We hope to hear further public support for risk commissions from other industry organisations. We also hope to be able to find ways to work together so that we can tackle the issue with a co-ordinated and consistent approach.
“Together, we can help to ensure that our industry’s ability to provide an incredibly valuable social good is not diminished.”
I trust that Mr. Yardley understands the issues we riskies face and the decimation that is underway in our once great industry.l I also trust that he understands nothing less than total attention and dedication to fighting the Hayne et al evil forces will take outspokeness and guile to overcome. Nothing else will save our industry and give the clients their’ best interest’ motivations they are owed.
Totally agree. I am yet to see another industry get so harassed and bullied into submission by the regulator who has no idea of what we actually do. Ultimately if we do not act as one cohesive body we are pretty much doomed. Commission needs to be capped at 80/20 or the consumer will be making up the shortfall by way of increased SOA fees. What’s the point of all the study with the uncertainty of your business in 2021. As stated show me the qualifications of those making these absurd rules. Please have a look at the petition to get the AFA and FPA to work as one thanks.
http://chng.it/BqTjDqRXGK
You ( NEOS) must be one of the “new fellas”, as Crosby said to Sinatra. Amongst PURE riskies, there is unity. LIF is responsible for a 25% reduction in NEW BUSINESS, and heading south. Insurers will suffer a quick death on their Number 1 fund unless the Govt stops LIF at 80/20, and reduces the TWO YEAR CLAWBACK. Watch Resolution in action, post AMP sale – no new business coming in, and therefore MUST slow claims and increase premiums to CAPTIVE clients. The life insurers NEED KAHUNAS, and stop being distracted by lower acquisition costs on rapidly reducing new risk – that’s a key to disaster !
I cannot believe all these proposed changes to do with removing commission first for super now for insurance??? I would be all for transitioning from commissions to a service fee, but give it the importance it deserves and let people digest what is and why it is required instead of dismissing it as money wasted!! what the??? how is one supposed to run a business and sustain a reasonable living in this industry?? and to be treated like imbeciles in redoing all education all over again to spend more time and money towards something that is unlikely to be seen as a profession and unlikely to reward the effort?? and what writing business for the providers??? what is the incentive??? Maybe the commissioner won’t mind paying our licensee fees and overheads??? and what how is this making our vocation a profession??? so much negativity once again punishing everybody and crippling the industry for a few bad apples is overkill!! where was the regulator when they needed to address each case as it arose?