Value still key in insuranceBY BEN COLLINS | THURSDAY, 2 AUG 2012 11:30AMThe remuneration components of the Future of Financial Advice reforms may be distracting from the needs of consumers when it comes to insurance, said Brett Clarke, chief executive officer, retail life, TAL. |
Editor's Choice
Frontier awards custody mandate for ICIO offering
Frontier Advisors has awarded a custody and administration mandate for its independent chief investment officer offering to the Australian market.
Alexander Funds names new chief executive
Alexander Funds has named a new chief executive, hiring from Australian Unity and set to take on the role September 7.
Soul Patts to pocket $1.89bn from Brickworks divestment
Washington H. Soul Pattinson & Co is set to receive $1.89 billion after agreeing to divest its stake in Brickworks' industrial joint venture property trusts to Goodman Group, freeing up capital for future investment opportunities.
ASIC expands list of super lead generation entities
ASIC has names 19 additional entities involved in superannuation lead generation activities as part of an ongoing review into business models that may encourage consumers to switch super funds unnecessarily or inappropriately.
Products
Expert Feed
When geopolitics becomes a portfolio risk
Geopolitics is back - again - and Australian investors can no longer treat it as distant background noise.
Does association membership still matter?
With all the changes the advice sector has experienced in recent years, such as regulatory reform and increased education and professional standards ...
Digital assets and where they stand in 2026
So far in 2026 digital assets have captured the headlines largely for the wrong reasons, but that doesn't tell the full story.
Rethinking default design in a changing market environment
The evolution underway in the US DC system highlights the value of periodically reassessing default design assumptions.
Featured Profile
Brian Redican
CHIEF ECONOMIST
NEW SOUTH WALES TREASURY CORPORATION
NEW SOUTH WALES TREASURY CORPORATION
What makes an economist an economist? TCorp chief economist Brian Redican reflects on over three decades of navigating Australia's economic cycles. Riddhima Talwani writes.
This will create mayhem for accountants in the insurance and mortgage industry. If the accountants stay in the industry to sell insurance and loans I cannot find an easy solution to their problem: If the accountants are to charge a fee for service on an insurance or mortgage plan only a very few clients would be willing to pay a fee which could be most significant. The result for clients would be lower premiums but many would not see it that way.
Alternatively, if a fee is charged and commission is rebated to the client and the policy is subsequently cancelled within say 12 months then it is quite possible that the agent will lose out plenty.
As a result of our dilemma, the client will go around the corner to the financial planner who will not charge a fee but is able to accept commission. Accountants will therefore be competing at a significant disadvantage to other planners.
I do see a solution: the accountants resign their membership of the ICAA, CPA etc and become CFPs. This would not be a very satisfactory solution but if the monetary benefits were significant then the accountants would have no choice.
I have one simple question: if the CEOs etc of fund managers receive a salary from companies which make most of their income from commissions, asset based fees or other non timed based methods will they have to resign from the accounting bodies because they are in breach of APES 230.
Alternatively can accountants in private practice receive a salary from their companies on the same basis as the big end of town.
Gerard Wilkes FCA CFP FFin