Australia: ASIC Report on Life Insurance Claims
Changing Your Mind, Asking "What if?"

FAA Review: FMA Will Control How Advice Firms Incentivise Agents and Advisers

From the cabinet paper on the proposed Financial Services Legislation Amendment Bill, which explains that one of the licensing conditions will be that Financial Advice Firms will...

"Be required to ensure they do not incentivise their agents to sell products without regard to consumer’s interests. This would require firms to recognise potential conflicts of interest – such as the role of incentives in sales and advice – and develop plans to effectively manage such conflicts of interest."

The document is worth a read as a whole (Link). Whenever licensing is mentioned, so are conflicts of interest, and immediately after that: commission and soft commissions. We think that control of commission through licensing is exactly what to expect from implementation of the regime. 


Feed You can follow this conversation by subscribing to the comment feed for this post.

The comments to this entry are closed.