In this episode of The ifa Show, AIOFP executive director Peter Johnston joins host Sarah Kendell to discuss the adviser association’s campaign to make MPs sit up and take notice about the impact of regulatory change in the industry.
Peter unpacks the main points of contention for AIOFP members, including the government’s poor implementation of the FASEA standards and rapidly rising compliance costs as a result of the annual opt-in legislation. He also discusses why advisers may want to consider abandoning the traditionally pro-business Coalition at the ballot box in the coming months.
Gotta say, while the Coalition has done many, many good things for Australia the last few years (not that any left leaning voter would acknowledge any of that – despite happily putting their hand out and taking a Jobkeeper payment).
Unfortunately, the Coalition has also allowed the financial services industry to be totally decimated by overregulation and compliance-burden the last few years at the same time which in turn has…
1) more than doubled the workload for financial advisers,
2) almost halved the remuneration that risk advisers are now ‘allowed’ to earn after doing all that,
3) subjected advisers to undergo ludicrous (and conflicted) further education requirements that NOT ONE OTHER INDUSTRY has been subjected to – including politicians themselves who’ve seen their own ethical, moral and professional conduct called into question but who continue making important financial decisions every day that affect Australians;
4) watched the mass exodus of thousands of highly experienced and qualified advisers from the industry the last 2 years as a result of the above (some sadly by taking their own lives after seeing their businesses and careers totally devalued and destroyed by the above initiatives);
5) caused the industry to suffer an unseen $30 Billion decrease in revenue last year;
6) caused Australia’s life insurance industry to experience policy lapse rates and insurance premium increases that have never been seen before and finally, if that’s not enough…
7) forced advisers to reject or offload their mum and dad clients as a result of the above significantly decreasing the affordability of financial advice to the average Australian.
So yeah – this is a great initiative by the AIOFP and sadly, very much needed for the survival of the financial services industry.
Peter at least you are having a crack which is more than most that whinge about the state of play cannot claim.
Great work Peter, somehow these LNP clowns need a huge kick up the arse.
So much for LNP being pro small business and supporting Real Advisers to help self funded retirees.
What an absolute bunch of arrogant clowns the LNP have been for at least 8 years but also over the last 20 years.
Did they return the money from their first fund raising venture re Life Insurance Commissions?
If not, where has the money gone?
Seriously, where?
Yes they returned the majority of the money less a small administrative fee.
Barking up the wrong tree there buddy