Centrepoint Alliance, Australia’s largest network of non-institutionally aligned financial advisers, is pleased to advise its advisers have voted overwhelmingly in favour of using hybrid and level commission remuneration options for life insurance from July 1, 2015. Upfront commission remuneration will no longer be available from this date.
CEO John de Zwart said this decision had the overwhelming support of its advisers with 9 out of every 10 voting in favour of the change.
“I am very pleased that our advisers have shown such leadership and worked so cooperatively to make this positive reform in the best interests of clients, advisers and the whole life risk industry,” said Mr de Zwart.
“This will remove any perception of conflict of interest in advising clients while ensuring they can access the quality advice they need.
“It will also ensure that advisers remain viable and are appropriately rewarded for their valuable advice. It will also encourage new advisers into the industry which are vitally needed if we are to seriously tackle Australia’s chronic underinsurance problem.
“Many clients today have complex needs and high financial commitments that require personal advice from an expert to ensure their dependents and lifestyle are properly protected.
“Our individual advisers have demonstrated great professional maturity in making this change and the AFA has shown excellent leadership in contributing to sustainable industry reform.
“Centrepoint is proud to play our part in this process and we hope that as an industry we are able to move on and implement many of the other positive reforms recommended in the Trowbridge Report to continue to improve professional standards, consumer protection and the sustainability of the whole sector.”
