AFA urges private talks on 'churn'

With the emotive issue of insurance 'churn' turning to one of 'sustainability', the Association of Financial Advisers (AFA) is keen to come to an agreement behind closed doors.

The Financial Services Council has softened its rhetoric on the issue in recent weeks, after backing down on its original proposal to self-regulate.

Discussing the minutes of a recent AFA board meeting, AFA president Michael Nowak told ifa that it was important to get an outcome “everybody is happy with” – especially given the time pressures and changes advisers have had to cope with under the Future of Financial Advice reforms.

“I think it's sub-optimal to have a discussion that is to-ing and fro-ing in the media on this. Ideally we should be able to all sit down and talk and come up with a resolution,” said Mr Nowak.

But first, there must be some evidence produced to show there is a problem, he said.

“If things do need to change, then let's have a discussion about it, but before we can do anything we need to see that there are issues,” he said.

Advisers were justifiably upset when the issue was initially portrayed as a 'churn' issue, Mr Nowak, added.

“Advisers are upset, and rightly so,” he said. “They need to see some evidence. They just want to be heard, and to make sure they're in this discussion.”

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