Former Wallaby Phil Kearns has been in the hot seat at Centric Wealth for five months and reflects on industry reform and the road ahead. After seven years at Investec, Kearns felt the need for a new challenge and started his new role as CEO of Centric in December last year.
Ian Bailey Life Insurance Advice Group looks like it is going to have a secret review ! ASIC has good reason to want changes but I believe the solution is quite simple. Don't ban Commissions, as this just becomes a big debate, do the things you can do easy is my suggestion for ASIC.
1) When Insurance is recommended the adviser must state that his/her commission of X$ is paid by the policy owner paying increased premiums.They cannot state that the commissions are paid by the life company giving the impression that the consumer is not responsible for the commission paid.
2) Adviser must show that they have researched Nil commission products, advise the clients of the cost and validate why they should be paid by commission if this is the option recommended by the adviser.
3)ASIC needs to check Life company's calculations for Nil commission products as they currently stand it seems that the company's have a vested interest in commission products. Chair of life insurance working group confirms submissions will be confidential
Ian Bailey I am in agreement with Arnie , as an Adviser I have been using direct investments for many years. We took the stance that our clients wanted to know what they owned, wanted to own their investments in their own name and wanted the option to invest in responsible businesses.
We decided to invest in producing our own application that would achieve these outcomes and make the process as easy as using a platform. After 5 years we think we have the perfect solution with good outcomes and cost benefits to our clients. Platform dominance under threat from direct investment channels