Following reports over tweets made by financial adviser James Howarth which racially targeted Mr Frydenberg over his role in the creation of the new life insurance framework, AFA chief executive Brad Fox said these types of comments have no role in the debate and are not acceptable.
“James Howarth is not a member. If he were, this would see him sanctioned and his membership terminated. Respect is a core value within the AFA culture,” Mr Fox said.
“We welcome a vigorous debate on this most important issue; however, we call for all to participate in an appropriate and professional manner.”
Mr Fox acknowledged the concern many advisers have over what the changes will mean for their businesses and future, adding that the AFA itself is also concerned.
“The framework is going to mean that business models have to change,” he said. “We are very concerned about the reduced earnings this will cause for many advisers, and the three-year clawback period and the way that will affect businesses when policies are cancelled through no fault of the adviser.
“As the details of implementation are worked out we will be pushing hard to see that insurers pass on cost savings through lower premiums, and that efficiencies are significantly improved for advisers in dealing with insurers.”
There will be no savings passed onto consumers – stop making this ridiculous assertion. Probably best if you act like Joe Hockey and bow out of the limelight for a while huh?