Key meetings on life/risk churn
The financial services industry appears to be moving closer to finding at least some common ground on the issue of sustainability and churn in the life/risk sector.
The Association of Financial Advisers' (AFA) so-called Insurance Framework Working Group is understood to be meeting today, after which it is expected to hold discussions with the Financial Services Council (FSC).
The meetings and discussions follow on from the announcement last month by the chief executive of the FSC, John Brogden, that his organisation, after receiving correspondence from the former Minister for Financial Services, Bill Shorten, would be looking to reopen development of an anti-churn "framework".
The FSC's position is also understood to have been influenced by the Australian Securities and Investments Commission (ASIC), with ASIC deputy chairman Peter Kell saying the regulator believed churn remained an issue for the industry.
At that time, the AFA acknowledged Brogden's comments, and while pointing out that advisers were not the sole source of the issue, said it was prepared to work towards finding a viable industry position on the issue.
Money Management understands that the degree to which progress will be made revolves around finding common ground on remuneration formulas and time-frames.
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