Advisers concerned to have some influence on the ultimate recommendations of the Life Insurance and Advice Working Group have responded in force to industry urgings to get involved with 130 submissions having been received by the chairman, John Trowbridge.
Advisers were urged to respond to the initial findings of the working group amid concerns that its interim report had failed to adequately reflect the actual working experience of life advisers.
Synchron director, Don Trapnell was one of its earliest and ongoing critics arguing in January that it needed to be closely examined by advisers because some of its recommendations, such as a five year responsibility period, represented a return to a regime abandoned in the 1980s.
He urged advisers and other interested parties to respond to the findings and recommendations of the interim report, providing clear evidence of how they operate their businesses and how they will be impacted by its recommendations.
The working group was established via the auspices of the Financial Services Council (FSC) and the Association of Financial Advisers (AFA) in the aftermath of a highly critical Australian Securities and Investments Commission (ASIC) report on the life/risk sector which included the issues of commissions and churn.
The working group interim report took account of the findings of the ASIC report but went further in seeking clarity around the operational norms currently prevailing in the life/risk sector.
Having received the 130 submissions, former Australian Prudential Regulation Authority executive, Trowbridge said the scope and quality had been outstanding.
"The scope and quality of submissions has been outstanding. Many have offered views, opinions and suggestions but many have also provided valuable information and analysis, both qualitative and quantitative, on a range of aspects affecting those businesses and individuals that provide life insurance financial advice and the life insurance business itself."
Trowbridge said the working group would produce a final report including recommendations for change at the end of March.
