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Calling on all financial advisers, time to make a difference

AIOFP

The AIOFP has launched a new campaign entitled ‘Battle of Fairness’ encouraging all advisers to make contact with government officials in response to the recent risk reforms.

We would like to ask any adviser that will be affected by the proposed reforms to make a stand and contact their local MP. To make this process as easy as possible simply cut and paste the letter below, pick your local MP’s email from the list provided and send.

Simply cut and paste the letter template below and choose an email address from the list provided underneath:

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Dear MEMBER OF PARLIAMENT,

 

I concur with the sentiments of the ASSOCIATION OF INDEPENDENTLY OWNED FINANCIAL PROFESSIONALS [AIOFP]  and endorse the following comments.

The AIOFP agrees in principle with the TROWBRIDGE Report and the general findings of the FINANCIAL SERVICES INQUIRY but disagrees with the severity of the recommendations presented to the Minister by the three Institutionally aligned Associations.

On June 25th 2015 the Financial Services Counsel [FSC], Financial Planning Association [FPA] and the Association of Financial Advisers [AFA] jointly submitted a proposal to Minister Frydenberg [the Proposal] which has been publicly accepted by the Minister. The AIOFP believes that the contents of this Proposal does not reflect the views of the 17,000  advice community, furthermore we believe the AIOFP was intentionally excluded from this process due to our propensity to positively support consumer and adviser issues.

We believe the Proposal is too Institutionally needs focussed and as a consequence will disadvantage CONSUMERS, exacerbate the nation’s UNDERINSURANCE deficiency and commercially damage sections of the SMALL BUSINESS community where 10,000 jobs will be lost.

We  believe the Minister has been misinformed about consumer/adviser issues and recommend that a compromise should be sought between what the Institutions are seeking to achieve and what is in the best interests of consumers, the nation and small business.

 

Please consider the following facts -

CONSUMERS – There is a significant marketing trend towards risk insurance policies being sold directly to consumers via telemarketers and online solutions by the Institutions. Due to the very simplistic [and inadequate] underwriting procedures with these policies, the rejection rate at the point of claim is around 50%. This is a very poor outcome for consumers with only one ‘winner’ – the Institutions who do not have to pay claims. It should be noted that the rejection rate for policies underwritten by a professional adviser at the point of claim is less than 4%. Clearly, consumers need professional advisers to ensure they get adequate and reliable cover.

NATIONS UNDERINSURANCE POSITION – It is a well - known fact that Australia has a massive underinsurance problem that desperately needs addressing. We do not believe the direct sales approach to consumers by institutional telemarketers or online strategies will protect families or assist the nation underinsurance dilemma.

SMALL BUSINESS  - A consumers family risk requirements  is not a one size fits all approach, each family needs a professional adviser to assess their specific needs. The Proposal’s recommendation to impose a 3 year ‘claw back’ period and half upfront commission payments unfairly treats the adviser with uncertainty of cash flow over 3 years making it very difficult to stay in business. Furthermore, the claw back penalties are solely focussed on the adviser with the institutions avoiding any culpability if the policy fails due to circumstances outside of the advisers control. [ie loss of job, health, changing family circumstances etc]

It is predicted that over 5,000 professional risk advisers will move/retire from the industry [with 5,000 support staff losing their jobs] leaving  the majority of advisers working for specific institutions offering conflicted and  biased advice to consumers. The industry and consumers cannot afford to lose professional advisers greatly diminishing choice for consumers.

SUMMARY – The Proposal is clearly too heavily weighted towards favourable outcomes for Institutions. Consumers will be disadvantaged, small business destroyed and our nations underinsurance challenges ignored. Consumers and the nation need professional advisers to assist families to make the right decisions that deliver positive protection outcomes for their family’s and the country’s benefit, not just the Institutions. 

The Institutions want to return the industry back to a tied agency culture where consumer choice and independent advisers are eliminated from the landscape. Their preference is the  heavily conflicted, vertically integrated model where advisers are acting in the best interests of the Institutions not consumers. This is in total contradiction to the theme of the FOFA manifest. The direct internet/telemarketing approach is also fundamentally flawed with far greater benefits for the Institutions over the best interests of consumers.

FOFA and the previous Minister deliberately excluded risk commission from conflicted remuneration for compelling reasons. Consumers generally need to be convinced of buying risk cover, they rarely pursue it. This is precisely why the Proposal needs to be modified to allow professional advisers to commercially survive, assisting the nations needs and offering choice to consumers.

Regards

NAME/BUSINESS.

 

 

Please contact your local MP from the list provided:

 

Adam Bandt

[email protected]

Albertus Van Manen

[email protected]

Alexander Hawke

[email protected]

Andrew Broad

[email protected]

Andrew Giles

[email protected]

Andrew Laming

[email protected]

Andrew Nikolic

[email protected]

Andrew Wilkie

[email protected]

Angus Taylor

[email protected]

Ann Sudmalis

[email protected]

Anna Burke

[email protected]

Antonio Zappia

[email protected]

Brett Whiteley

[email protected]

Catherine McGowan

[email protected]

Christopher Hayes

[email protected]

Clare O'Neil

[email protected]

Craig Kelly

[email protected]

Craig Laundy

[email protected]

Daniel Tehan

[email protected]

David Coleman

[email protected]

Don Randall

[email protected]

Dr Andrew Southcott

[email protected]

Dr David Gillespie

[email protected]

Dr Dennis Jensen

[email protected]

Dr James Chalmers

[email protected]

Dr Peter Hendy

[email protected]

Eric Hutchinson

[email protected]

Ewen Jones

[email protected]

Fiona Scott

[email protected]

Gai Brodtmann

[email protected]

George Christensen

[email protected]

Graham Perrett

[email protected]

Ian Goodenough

[email protected]

Jane Prentice

[email protected]

Jason Wood

[email protected]

Jill Hall

[email protected]

Joanne Ryan

[email protected]

John Alexander

[email protected]

Julie Owens

[email protected]

Karen Andrews

[email protected]

Karen McNamara

[email protected]

Keith Pitt

[email protected]

Kelly O'Dwyer

[email protected]

Kenneth O'Dowd

ken.o'[email protected]

Kenneth Wyatt

[email protected]

Kevin Hogan

[email protected]

Laurie Ferguson

[email protected]

Lisa Chesters

[email protected]

Louise Markus

[email protected]

Lucky Wicks

[email protected]

Luke Howarth

[email protected]

Luke Simpkins

[email protected]

Maria Vamvakinou

[email protected]

Mark Coulton

[email protected]

Matthew Williams

[email protected]

Melissa Price

[email protected]

Michael Sukkar

[email protected]

Michelle Landry

[email protected]

Michelle Rowland

[email protected]

Natasha Griggs

[email protected]

Nicholas Champion

[email protected]

Nickolas Varvaris

[email protected]

Nola Marino

[email protected]

Patrick Conroy

[email protected]

Paul Fletcher

[email protected]

Richard Wilson

[email protected]

Robert Mitchell

[email protected]

Ross Vasta

[email protected]

Rowan Ramsey

[email protected]

Russell Broadbent

[email protected]

Russell Matheson

[email protected]

Sarah Henderson

[email protected]

Scott Buchholz

[email protected]

Senator Alexander Gallacher

[email protected]

Senator Anne McEwen

[email protected]

Senator Anne Ruston

[email protected]

Senator Anne Urquhart

[email protected]

Senator Bridget McKenzie

[email protected]

Senator Carol Brown

[email protected]

Senator Catryna Bilyk

[email protected]

Senator Christine Milne

[email protected]

Senator Christopher Back

[email protected]

Senator Christopher Ketter

[email protected]

Senator Claire Moore

[email protected]

Senator Cory Bernardi

[email protected]

Senator David Bushby

[email protected]

Senator David Fawcett

[email protected]

Senator David Leyonhjelm

[email protected]

Senator Dean Smith

[email protected]

Senator Gavin Marshall

[email protected]

Senator Glenn Sterle

[email protected]

Senator Helen Polley

[email protected]

Senator Jacqui Lambie

[email protected]

Senator James McGrath

[email protected]

Senator Janet Rice

[email protected]

Senator John Madigan

[email protected]

Senator John Williams

[email protected]

Senator Joseph Bullock

[email protected]

Senator Larissa Waters

[email protected]

Senator Lee Rhiannon

[email protected]

Senator Linda Reynolds

[email protected]

Senator Lisa Singh

[email protected]

Senator Matthew Canavan

[email protected]

Senator Nicholas Xenophon

[email protected]

Senator Nova Peris

[email protected]

Senator Penelope Wright

[email protected]

Senator Peter Whish-Wilson

[email protected]

Senator Rachel Siewert

[email protected]

Senator Richard Di Natale

[email protected]

Senator Ricky Muir

[email protected]

Senator Robert Day

[email protected]

Senator Sam Dastyari

[email protected]

Senator Sarah Hanson-Young

[email protected]

Senator Scott Ludlam

[email protected]

Senator Sean Edwards

[email protected]

Senator Stephen Parry

[email protected]

Senator Susan Lines

[email protected]

Senator The Hon Arthur Sinodinos

[email protected]

Senator The Hon Brett Mason

[email protected]

Senator the Hon Concetta Fierravanti-Wells

[email protected]

Senator The Hon David Johnston

[email protected]

Senator the Hon Douglas Cameron

[email protected]

Senator the Hon Eric Abetz

[email protected]

Senator The Hon Fiona Nash

[email protected]

Senator The Hon George Brandis

[email protected]

Senator The Hon Ian Macdonald

[email protected]

Senator The Hon Jacinta Collins

[email protected]

Senator The Hon Jan McLucas

[email protected]

Senator The Hon John Faulkner

[email protected]

Senator The Hon Joseph Ludwig

[email protected]

Senator The Hon Kate Lundy

[email protected]

Senator The Hon Kim Carr

[email protected]

Senator The Hon Marise Payne

[email protected]

Senator The Hon Mathias Cormann

[email protected]

Senator The Hon Michael Ronaldson

[email protected]

Senator The Hon Michaelia Cash

[email protected]

Senator The Hon Mitchell Fifield

[email protected]

Senator The Hon Nigel Scullion

[email protected]

Senator The Hon Penny Wong

[email protected]

Senator The Hon Richard Colbeck

[email protected]

Senator The Hon Simon Birmingham

[email protected]

Senator The Hon Stephen Conroy

[email protected]

Senator The Hon William Heffernan

[email protected]

Senator Zdenko Seselja

[email protected]

Senator Zhenya Wang

[email protected]

Sharon Claydon

[email protected]

Stephen Irons

[email protected]

Stephen Jones

[email protected]

Stuart Robert

[email protected]

Terri Butler

[email protected]

The Hon Alan Griffin

[email protected]

The Hon Alan Tudge

[email protected]

The Hon Alannah MacTiernan

[email protected]

The Hon Amanda Rishworth

[email protected]

The Hon Andrew Leigh

[email protected]

The Hon Andrew Robb

[email protected]

The Hon Anthony Burke

[email protected]

The Hon Anthony Byrne

[email protected]

The Hon Anthony Norman Albenese

[email protected]

The Hon Anthony Smith

[email protected]

The Hon Barnaby Joyce

[email protected]

The Hon Bernard Ripoll

[email protected]

The Hon Brendan O'Connor

Brendon.O'[email protected]

The Hon Bronwyn Kathleen Bishop

[email protected]

The Hon Bruce Fredrick Billson

[email protected]

The Hon Bruce Scott

[email protected]

The Hon Catherine King

[email protected]

The Hon Charles Porter

[email protected]

The Hon Chris Eyles Bowen

[email protected]

The Hon Christopher Pyne

[email protected]

The Hon Darren Chester

[email protected]

The Hon David Feeney

[email protected]

The Hon Dr Sharman Stone

[email protected]

The Hon Edham Husic

[email protected]

The Hon Gary Gray

[email protected]

The Hon Gregory Hunt

[email protected]

The Hon Ian Mcfarlane

[email protected]

The Hon Jamie Briggs

[email protected]

The Hon Jason Clare

[email protected]

The Hon Jennifer Macklin

[email protected]

The Hon Joel Fitzgibbon

[email protected]

The Hon John Cobb

[email protected]

The Hon Joseph Hockey

[email protected]

The Hon Joshua Frydenberg

[email protected]

The Hon Julie Bishop

[email protected]

The Hon Julie Collins

[email protected]

The Hon Katherine Ellis

[email protected]

The Hon Kelvin Thomson

[email protected]

The Hon Kevin Andrews

[email protected]

The Hon Luke Hartsuyker

[email protected]

The Hon Malcolm Brough

[email protected]

The Hon Malcolm Turnbull

[email protected]

The Hon Maria Elliot

[email protected]

The Hon Mark Butler

[email protected]

The Hon Mark Dreyfus

[email protected]

The Hon Matthew Thistlewaite

[email protected]

The Hon Michael Danby

[email protected]

The Hon Michael Keenan

[email protected]

The Hon Michael McCormack

[email protected]

The Hon Peter Dutton

[email protected]

The Hon Philip Ruddock

[email protected]

The Hon Richard Marles

[email protected]

The Hon Robert Charles Baldwin

[email protected]

The Hon Robert Katter

[email protected].gov.au

The Hon Scott Morrison

[email protected]

The Hon Sharon Leah Bird

[email protected]

The Hon Shayne Neumann

[email protected]

The Hon Steven Ciobo

[email protected]

The Hon Sussan Lay

[email protected]

The Hon Tanya Plibersek

[email protected]

The Hon Teresa Gambaro

[email protected]

The Hon Warren Entsch

[email protected]

The Hon Warren Snowdon

[email protected]

The Hon Warren Truss

[email protected]

The Hon Wayne Swan

[email protected]

The Hon William Shorten

[email protected]

Timothy watts

[email protected]

Tony Pasin

[email protected]

Wyatt Roy

[email protected]

 

 

The AIOFP would like to thank you for your support!

Calling on all financial advisers, time to make a difference
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