Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Advisers call out FASEA as top challenge

FASEA/integrity-life/education/advisers/Financial-Adviser-Standards-and-Ethics-Authority/education-reforms/Suzie-Brown/professional-standards/life-insurance/life-insurance-framework/insurer/Senate-Committee/

13 November 2018
| By Anastasia Santoreneos |
image
image image
expand image

Financial adviser partners of Integrity Life have named their top three challenges and it’s no surprise the Financial Adviser Standards and Ethics Authority’s (FASEA’S) education reforms have claimed top spot.

Suzie Brown, general manager of distribution at Integrity Life, said advisers claimed their top challenge was changing education requirements.

“Many advisers are deeply concerned with the proposed professional standards which may see some advisers exiting the industry,” said Brown. “The question is, ‘what will the sector look like and how will advisers meet the challenge of updating their qualifications whilst still running their businesses and servicing their clients?’”

Revenue impacts were in second spot, with the removal of grandfathering on both investments and insurance, reduced commissions under the Life Insurance Framework, and a changing marketplace causing increased concern within the industry.

Brown said legacy system issues were advisers’ third challenge, with applications, underwriting and claims failing to sync together.

“This leads to difficulty in on-boarding, getting claims processed, and overall frustration from advisers and their clients around how complex and cumbersome the current experience can be,” she said.

She said many advisers reported relying on relationships with their contacts in the insurer to smooth the process.

Brown said the bottom line is that, through all the changes in the life insurance industry, Australians still need advice, with 59 per cent of respondents surveyed in PwC’s submission to the Senate Economics References Committee Inquiry into the Life Insurance Industry finding life insurance too complex.

“Clearly, the focus needs to shift from the insurer to the customer when we are designing our products and services.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

4 weeks ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 2 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 6 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND