Centrepoint Alliance has become the first large non-aligned planning group to remove upfront commissions on life insurance by shifting to hybrid and level commission from July 1.
Centrepoint Alliance chief executive John de Zwart said the issue had been put to the group’s advisers with 90 per cent voting for the change with upfront commissions to cease being on offer at the end of the current financial year.
“I am very pleased that our advisers have shown such leadership and worked so cooperatively to make this positive reform in the best interests of clients, advisers and the whole life risk industry,” said de Zwart.
“This will remove any perception of conflict of interest in advising clients while ensuring they can access the quality advice they need.
De Zwart said the move would result in current advisers being appropriately paid for advice and would encourage new advisers into the industry
He praised the group’s advisers and the Association of Financial Advisers for their efforts to this point stating “our individual advisers have demonstrated great professional maturity in making this change and the AFA has shown excellent leadership in contributing to sustainable industry reform.”
“Centrepoint is proud to play our part in this process and we hope that as an industry we are able to move on and implement many of the other positive reforms recommended in the Trowbridge Report to continue to improve professional standards, consumer protection and the sustainability of the whole sector.”
The move follows AMP’s announcement that it would be dropping upfront commissions from July 1 following the release of the Trowbridge Report into suugested changes to life insurance remuneration for financial advisers.
