AIOFP alleges ‘institutional sellout’ on life/risk
The Association of Independently Owned Financial Planners (AIOFP) will submit its own proposal to changes to life insurance commission labelling the tri-party proposal already on the table as a sell out with little regard for advisers.
In an email message to members AIOFP executive director Peter Johnston stated that the proposal created by the Financial Services Council (FSC), the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA) could not have been created in consultation with advisers as none would have agreed with the suggested changes.
"No doubt the three Associations would have superficially ‘consulted' the advisers but all they have done is insulted them with draconian institutional focussed
amendments with little regard for consumers or advisers," Johnston stated.
He said advisers has been sold out in favour of the institutions and this was the result of the FSC, FPA and AFA all having links to or being influenced by institutions.
"The FSC is the home of the institutions so you cannot expect them to be adviser focussed."
"The FPA is majority institutionally aligned advisers and heavily influenced by Institutions behind the scenes, where do you expect their allegiances to be?"
"The AFA is the old Life Underwriters Association for AMP and National Mutual advisers who have Institutions as members, again where do you expect their allegiances to be?"
Johnston told AIOFP members that where these associations have independent members they have used those member to portray them as key bodies representing the wider industry resulting in proposals such as the one recently passed on to government.
He also stated that insurance commissions problems were not the making of advisers but rather other market participants and there needed to be other industry representation on this issue before government and industry regulators.
"Like some aspects of FOFA and product failure, the advisers have been blamed for the short comings of other market stakeholders," Johnston said.
"This is yet another lesson to the independent sector that we cannot afford to allow these institutionally aligned/sympathising associations to represent us with the regulators or government."
According to Johnston the AIOFP has already spoken with some Independent Senators about gaining support for its suggested amendments to the new life commission regime and will submit those amendments by the end of this week.
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