Challenger Limited has acknowledged that the negative perceptions of financial planners generated by the Royal Commission and other events are having an impact on its annuities business.
In commentary attaching to the release of its half-year results, Challenger said its Life business relied on financial advisers, both independent and part of major hubs, to distribute its products.
“Following hearings on financial advice in the Royal Commission into Misconduct in the Banking and Financial Services Industry there has been reduced customer confidence in retail financial advice and significant disruption across the adviser market,” it said.
“This includes increased adviser churn and reduced acquisition of new clients by financial advisers.”
“While there is a relatively less direct impact form the Royal Commission final report on Challenger, and Life’s customers are not questioning the quality of its products or services, the disrupted industry environment is impacting Life’s sales,” the commentary said.
“Life has a strong reputation with adviser trust in the quality of its products and services and is broadening its distribution reach by making its annuities available on platforms targeting the individual financial advisers market,” it said.
Comments
This is just the tip of the iceberg.
Wait until the ridiculous and unfounded recommendation to remove grandfathered commissions on existing business, reduction in Life Insurance commission, payment of adviser fees from superannuation accounts etc etc gets a run and the financial services industry will be decimated and new business inflows to both funds management and insurance arms will nothing but a trickle.
If Kenneth Hayne, the Liberal and Labor Govt believe or think the recommended legislative changes are going to enhance consumer outcomes it will be the most misguided, manipulated and destructive mistake ever made in the history of Australian financial services.
None of the recommendations can be qualified to enhance the consumer outcome...it is unproven and an entirely unnecessary and politically motivated strategy.
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