Transition time now key element in Trowbridge talks
The length of the transition to new remuneration structures for the life/risk sector remains the most significant unresolved issue in the industry's attempts to deliver a united position to the Government on life/risk remuneration and advice in the aftermath of the Trowbridge Report.
At the heart of the remuneration arrangements will sit a hybrid structure, equating to less than the 80/20 which had been canvassed by some long-time life/risk advisers following the release of the Trowbridge Report.
Money Management understands that the key stakeholders — the Financial Services Council (FSC), the Association of Financial Advisers (AFA) and the Financial Planning Association (FPA) — have already held a series of meetings with Government officials and the minister and that some broad agreement has already been reached.
However, the transition arrangements still remain a subject of debate between the parties, with the planner groups continuing to urge three years, consistent with the time-frames allowed for the Future of Financial Advice (FOFA) changes, while others are arguing for as little as 12 months.
Money Management understands that the Assistant Treasurer, Josh Frydenberg, may be in a position to make an announcement on the issue within the next fortnight.
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