The financial planning sector will quickly adapt to the introduction of the Life Insurance Framework (LIF) with non-aligned group Synchron expecting to pick up advisers from other planning networks as a result of the changes.
Synchron director, Don Trapnell, said LIF would be the catalyst that causes more financial advisers to look for non-institutional licensees and his group retained a close connection with its advisers.
“Whatever direction the industry takes we will not lose that connection. We believe our model will be very attractive to other advisers in a post-LIF world,” Trapnell said.
He said Synchron will be conducting a group wide examination of LIF and its impact on the group’s business models, future revenues and adviser sentiment at an internal conference next month.
According to Trapnell these events are run every few years by Synchron to set the direction of the planning group with senior industry executives and Synchron advisers examining future directions and current practices of the group with this conference to focus on succeeding in the new LIF environment.
Trapnell said while the LIF was not ideal planners had to adjust to the model and continue to provide advice.
“As they currently stand, clawbacks are unjust — particularly for new advisers entering the industry — but overall, the LIF could have been much worse. It’s a matter of fixing the clawback issue and getting on with business.”
