Upfront commissions not the problem: BFP


Banning upfront commissions on insurance products is not the answer to weeding out unscrupulous advisers, according to The Boutique Financial Planning Principals' Group.
According to the group's president, Dacian Moses, the behaviour itself has to be targeted and not the remuneration structure in isolation.
He said while he agrees with the Financial Planning Association (FPA) that educational standards must be lifted, much of the problems besetting insurance advisers actually stem from "product design and pricing flaws".
"While the BFP is unaware of any members being the subject of adverse findings we can say that all of our members are AFS licensees focused on holistic financial planning which often includes "strategic life insurance advice" as recommended by the Australian Securities and Investments Commission (ASIC) in its report," he added.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.