Veteran adviser dismisses calls for LIF unity

AFA member and former president of the ACT branch, Bill Brown, responded to Ross Johnston’s blog calling for unity around the LIF by saying that the AFA leadership has dismissed the Life Insurance Customer Group’s calls for proper communication.

“Ross, you’re correct that, in a political sense, disunity is death,” Mr Brown said in an email to Risk Adviser.

“But unity in any cause requires both sides to be offered the opportunity to listen in good faith to the other, and then both sides actually commit to listen.

“You can only listen if your opposition in the debate can be bothered to communicate.”

Mr Brown said most non-institutional licensees are “somehow not perturbed by the fact that a loss of 50 per cent of adviser remuneration over three years under the Life Insurance Framework will undoubtedly lead to a similar loss of revenue to licensees”.

“Have these licensees somehow swallowed the ASIC line that mum and dad insurance consumers would be happy to pay a $1,500-to-$2,000 fee for advice, which urges them to buy something they would rather not buy, and pay for that advice on top of their slightly discounted premiums of $2,000-to-$3,000 for a comprehensive family risk plan?

“That’s field of dreams stuff, folks, unless licensees have been given some other assurances behind the scenes.” 

Mr Brown also criticised the AFA’s abandonment of its provision of risk adviser education courses in favour of insurer-provided training, despite the scarcity of insurers willing to provide non-product specific training.

“Right now, there are new risk advisers out there who need help from the AFA,” he said.

“The appropriate life risk training is not being provided by licensees, nor are insurers fronting up, with the two exceptions.”

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].