A Recent poll of Genesys advisers suggested the vast majority of financial advisers are in favour of reducing compliance requirements to make it more financially viable for advisers to give good advice to the lower end of the market.
The survey found the vast number of more than 65 Genesys risk advisers thought it appropriate in certain circumstances for a modified rather than a full Statement of Advice (SOA) to be issued to clients needing small amounts of cover.
A series of ‘guidelines’ agreed to by the respondents included making a SOA non-compulsory in certain circumstances, according to Genesys risk research officer Brian Faull.
He said the guidelines called for a full SOA to be made non-compulsory if the new, additional risk cover or premium on a life insured in a calendar year was greater than:
~ an annualised premium of $1,200;
~ a capital benefit amount of $500,000; or
~ a revenue benefit amount of $2,500 a month.
The guidelines also called for a full SOA to be non-compulsory in a ‘no-advice’ sale situation, and if a full SOA was not provided, this would be acknowledged in writing by the client.
If a full SOA was not provided, advisers would need to ensure that appropriate personal risk minimisation procedures were utilised.
Faull said it was also agreed that the purpose of the guidelines would be to “assist advisers to know what is required of them and for a client to know what they can expect”, he said.
