MLC & NAB Wealth calls for transition period
(29 April 2011 – Australia) "Following years of debate, it is great to finally get clarity on what practices are acceptable and have a uniform framework under which the industry can move forward," said Steve Tucker, Group Executive of MLC & NAB Wealth.
An appropriate transition period has been called for by MLC & NAB Wealth when the Future of Financial Advice reforms kick in.
Mr Tucker said the bulk of the reform’s changes would create a less complex, more transparent advice system where the value of advice could come to the fore and advisors could be recognised the work they do, including helping thousands of Australians achieve a more comfortable retirement.
'Whilst we fully support the need for the industry to move away from volume related payments, this is a substantial change and needs to be managed over a reasonable time frame.
'Removing volume related payments from the system will require some adjustments to business models and will impact advisers, licensees and product manufacturers who currently participate in volume rebate arrangements," Mr Tucker said.
He said he was disappointed with the decision around commissions on insurance inside superannuation and cautioned that this could result in an increase to Australia's underinsurance challenge.
He said they would speak to the government on this issue.
Mr Tucker said the bulk of the reform’s changes would create a less complex, more transparent advice system where the value of advice could come to the fore and advisors could be recognised the work they do, including helping thousands of Australians achieve a more comfortable retirement.
'Whilst we fully support the need for the industry to move away from volume related payments, this is a substantial change and needs to be managed over a reasonable time frame.
'Removing volume related payments from the system will require some adjustments to business models and will impact advisers, licensees and product manufacturers who currently participate in volume rebate arrangements," Mr Tucker said.
He said he was disappointed with the decision around commissions on insurance inside superannuation and cautioned that this could result in an increase to Australia's underinsurance challenge.
He said they would speak to the government on this issue.
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