Consistency key to life/risk recommendations
Financial planners should treat advice on life insurance products in the same way they treat other services they recommend, according to Financial Planning Association of Australia (FPA) general manager policy and conduct, Dante de Gori.
De Gori told delegates at the FPA Professional Congress some outside the planning industry were sceptical of planners’ motives for recommending life insurance products.
“[The view that] many looking at the industry have is that people’s recommendation of a product is doe the purposes of remuneration,” he said.
“Of course we know that’s obviously not true in most cases, the reason why you’re making a recommendation for a client is for the purposes of a particular need.
“The process in which you go and recommend a product in insurance is no different to the process you should be using to recommend any other product.”
Life under the new Life Insurance Framework will be discussed at a Money Management breakfast on 3 December in Sydney which will be addressed by a panel including outgoing FPA chief executive, Mark Rantall, the Association of Financial Advisers chief executive, Brad Fox and ClearView chief executive, Simon Swanson.
AUTHOR
Nicholas O'Donoghue
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