Upfront commissions not the problem: BFP
Banning upfront commissions on insurance products is not the answer to weeding out unscrupulous advisers, according to The Boutique Financial Planning Principals' Group.
According to the group's president, Dacian Moses, the behaviour itself has to be targeted and not the remuneration structure in isolation.
He said while he agrees with the Financial Planning Association (FPA) that educational standards must be lifted, much of the problems besetting insurance advisers actually stem from "product design and pricing flaws".
"While the BFP is unaware of any members being the subject of adverse findings we can say that all of our members are AFS licensees focused on holistic financial planning which often includes "strategic life insurance advice" as recommended by the Australian Securities and Investments Commission (ASIC) in its report," he added.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
