The Association of Financial Advisers (AFA) is continuing to proactively support advisers as reforms proposed by the Life Insurance Framework (LIF) are shaped.
AFA CEO Brad Fox said, “It is clear that regardless of the finer details of the LIF, there will be a move to a hybrid remuneration model. The AFA is therefore committed to helping members develop models that will enable them to maintain viable businesses.”
The national AFA Life Insurance Roadshow (the LIF Roadshow), which kicked off in Hobart this morning and visits major Australian capital cities will analyse the implications of the LIF and explore remuneration options.
“There is ample evidence of successful transitions by risk-focused advisers to hybrid models over the last three to five years,” Mr Fox said. “Many businesses that have made the transition have seen stronger recurring cash flows and greater business valuations. We believe if practices devise and employ a watertight transitioning plan and execute it correctly, they will get positive results.”
Mr Fox said the LIF Roadshow will also help risk-focused advisers consider options such as implementing advice fees, and/or investing in further education so that they can expand into other areas of advice such as estate planning or superannuation advice.
Advisers have told us they need support to adapt to the proposed changes and want the opportunity to workshop how to most successfully use hybrid commissions, how to help clients accept a separate advice fee perhaps alongside a commission, and how to deal with the three year clawback danger,” he said. “That is what the LIF Roadshow is all about.”
The LIF Roadshow follows the LIF Q&A session held during the AFA National Practitioner Roadshow earlier this month.
Source: AFA
