Financial Planning
Synchron renews calls on risk advice separation

Synchron director Don Trapnell is sticking by his long-held view that if risk advice and financial advice are not separated, dedicated risk advisers will exit the industry in droves.

"Australians need access to both life insurance advisers and financial planning advisers, but in our experience, these are usually two separate people and two separate disciplines," Trapnell said.

He said the skill set and services provided by specialist risk advisers are different from financial planners.

"It is therefore difficult to see why there is such a push for them to hold the same qualifications and commit to the same educational program as financial planners. It doesn't really make sense," he said.

Trapnell has called for life insurers to back its call for separation between the two.

"Like Synchron, we believe life insurers recognise just how vital risk advisers are to clients, to the ongoing sustainability of the life insurance industry and to Australia and so we are encouraging them to join us in our call for the separation of risk advice from financial planning advice," he said.

Trapnell has long advocated for licensees to be hold a specialist Australian Financial Services Licence (AFSL) to deal in financial planning advice and/or life insurance.

A licensee could then choose to hold one or, as Synchron would, both licences and their authorised representatives could be authorised in either or both, he said.

Read more: SynchronAustraliaDon TrapnellAustralian Financial Services LicenceAustralians
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