Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

LIF transition needs support network

LIF/advisers/transition/

11 October 2016
| By Malavika |
image
image image
expand image

The most effective method to adapt to new commission structures under the life insurance framework (LIF) is to showcase advisers who have already transitioned to newer models and demonstrated the models work, according to the Association of Financial Advisers (AFA).

In a media briefing at the AFA 2016 National Adviser Conference in Canberra last week, new national president, Marc Bineham, said many of the younger advisers had already adapted their businesses to a fee-for-service model with no commissions, or a combination of both.

"We've been addressing this for a number of years now, where we've actually had, an older adviser, an experienced adviser like myself, who have gotten up on stage and said this is what we do and then we've employed a younger adviser and said we're now going to have to charge a fee for that," Bineham said.

"They say, ‘yeah, that's fine', and the client is fine because they actually understand that if you do the work and you provide the value, charging a fee is not a problem."

Bineham said he also found it difficult to charge clients a fee after never having done so for 28 years.

"But the client had no problem with it. It was me. Not the client," he said.

Advisers would find it valuable to hear anecdotal evidence from other advisers to see first-hand what did and did not work for them, he said.

"To me that will be the easiest way to get the message: when you see other advisers have adapted, well, if they can do it, why can't I?"

The message came the day after the AFA held an extraordinary general meeting (EGM) on 6 October, where a vote was held to change the association's constitution to force it to oppose all LIF legislation for three years.

The AFA won with a clear mandate to leave the constitution unchanged.

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...

4 days 16 hours ago

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

1 week 4 days ago

So we are now underwriting criminal scams?...

6 months 2 weeks ago

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

6 days 12 hours ago

Libby Roy has been appointed as an independent non-executive director on the board of AZ NGA....

3 weeks 6 days ago

A professional year supervisor has been banned for five years after advice provided by his provisional relevant provider was deemed to be inappropriate, the first time th...

2 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3