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SD, I'm guessing you are either not an adviser, or you are blessed with perfectly organised and responsive clients with lots of time on their hands. The big problem with annual agreements for those of us with busy clients, is they often struggle to keep appointments or sign forms within a rigid 12 month period. They travel, they have work commitments, they have kids to look after.

These clients are actively engaged and are quite happy to pay ongoing fees automatically from their product. But they want their service delivered at times convenient for them. Not at times dictated by compliance bureaucrats. Sometimes this will mean 15 months between appointments, sometimes it will be 9 months. These clients cannot understand this obsession with rigid 12 month timeframes and do not take it seriously. They dismiss it as silly bureaucracy which can be safely ignored. Unfortunately, many of them end up being forcibly cut off as clients as a result. This causes resentment, ill will, and a loss of trust in the financial advice process. But I guess that's exactly the outcome many of the architects of this senseless bureaucracy were hoping for.