In a submission to the Financial System Inquiry, the life insurer noted its support for scaled advice to allow clients to receive a level of advice appropriate to their financial needs.
“To help consumers navigate through the different forms of advice that is available, advice labels should be renamed to provide greater clarity,” TAL said in a statement.
“Specifically, general advice should be renamed Product Information, scaled advice renamed Product Advice while Personal Advice (or full advice) should remain unchanged.”
TAL’s submission also called for higher standards for financial planners via mandatory certification, minimum university education qualifications, a national register and ongoing training.
The group noted that it “has actively promoted this view” through its advice arm, Affinia Financial Advisers.
TAL also reiterated its concern over funeral insurance products having stepped premiums customers with income-tested government benefits on fixed incomes, by stressing the need for an enhancement of ASIC powers in regard to product intervention powers.
“We are seeking changes to allow consumers to have greater flexibility and ease to both obtain and maintain financial protection, and to enhance their confidence by improving various standards,” TAL Group chief executive Jim Minto said.
“Life insurance not only protects the lives people have already created but it protects the future they imagine.
“To do this we are seeking strong consumer protection and regulatory oversight, enhanced advice delivery and effectiveness, and to give consumers access to more innovative and contemporary products that better meet their needs via the technology they are using today and in the future.”
i’ve just labeled that last IFA article i read the most ridicules thing i’ve read, and this now equals it. what relationship does ‘scaled advice’ have to ‘product advice’? if a client comes in and ask specifically for advice on centrelink only, is that scaled advice? has the personal advice not been scaled down to meet the limited requirement? ‘Scaled’ is scaled, ‘product’ is product, and ‘full advice’ is given in entirety, any or all of these can be ‘personal’ advice. you can’t so narrowly define a broad term. think ahead. what will we call advice given on a particular topic if we can’t use ‘limited’, can’t use ‘scaled’, can’t use ‘full’ and can’t use ‘personal’. let’s invent yet another term…