The Commonwealth Bank has warmly welcomed John Trowbridge’s “constructive contribution to industry reform”.
In a statement issued on Friday, the bank’s group executive for wealth management, Annabel Spring, backed the Life Insurance and Advice Working Group (LIAWG) report’s recommendation to establish a new code of conduct for insurers and mandate broad approved product lists for licensees.
“It is critical that the life insurance and financial advice industries work to implement sustainable remuneration structures,” Ms Spring said.
“A life insurance industry code of practice which binds insurers, licensees and advisers will both improve outcomes for customers and the efficiency of the industry.
“We believe advisers need a choice of insurers and products in the provision of advice to provide a range of options to meet the best interests of all customers.”
While it supports “the intent of the report” the bank will now be assessing the impact of the recommendations on its various stakeholders, including customers and affiliated advisers.
The comments come as the AFA, an LIAWG co-founder, has expressed “caution” over the report’s recommendations, publicly stating that the association cannot offer “complete support”.
Meanwhile, Madison Financial Group general manager Giulio Russo told ifa he expects an exodus of risk-only advisers should the report’s proposals be implemented, while former AFA president Michael Nowak has warned there would be a significant negative impact on non-aligned advice businesses.
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