Risk reforms ignore key adviser concernsBY ALEX BURKE | THURSDAY, 25 JUN 2015 1:05PMRisk advisers expressed concern that the industry-led risk reforms package ignores the problem of vertical integration and client-driven policy churn. Related News |
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David Sharpe
CHAIRMAN
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
A family man, business owner, cricket fanatic and financial adviser, David Sharpe has many facets. One of his biggest legacies, as he steps down as chair of the Financial Advice Association Australia, is leaving the profession stronger than he found it.







I find it interesting how all the vertically integrated wealth management companies are all saying how positive this outcome is for them.
They pay themselves $500k a year and say it's our (advisers) fault they can't make a profit.
Biggest load of garbage I have ever seen.
I wonder how positive they will be when they see their sales drop.
I also wonder how the government will view the massive under insurance that will follow from this decision.
1. Claw-backs on insurance have around since inception-no change
2 Upfront v reduced have a look at the discount from Insurers minimal.
3 Increase in premium Insurers re evaluating their risk ( so what do you do??)
4 If the policy persist ?? Typical comment!! keep premiums competitive pay the claims in a prompt manner ( Do not try and underwrite after the claim is made).
No difference to my business but I feel that it all revolves around the few versus those that actually make a living out of the risk business.
Two things I forgot to ask in my first post:
1) Will the life company execs take a pay cut commensurate with advisers to assist and help offset the 'great reset' the industry will endure due to increased costs of compliance, new systems to manage this debacle and their basic ineffectiveness in getting the churners OUT of our industry? The churners caused this - not the high commissions, let's not forget this. The only entities who could stop this were and are life companies. They did not stop this and now look what we have!
2) Will the dealerships reduce our fees to offset this reduction in our income?
I think we can all anticipate the answers to these two questions.