Wealthpoint to lower fees and increase commission, and more daily news

Wealthpoint has recently announced that product commissions will be under 4%. In a statement Wealthpoint said that the co-op retention rate will be approximately 3% starting from next year. Members are set to receive more commission as a result of the updated cap on the financial support Wealthpoint received from life and health insurers.

“National adviser business cooperative, Wealthpoint, has slashed member costs as the group looks to build further scale in the lead-up to full licensing across the industry.

Wealthpoint chief, Simon Manning, told members last week that the group would pass on more revenue to adviser businesses under revised commission terms.

Manning said Wealthpoint, which serves as the Financial Advice Provider (FAP) for about 50 independently owned advisory firms, would cut its “retention” rate – or the share of product commission kept by the central co-op entity – to under 4 per cent.

The co-op charges member annual fees to advisers and businesses as well as retaining a share of commissions earned on insurance, mortgage, investment and KiwiSaver products sold through the network.

Currently, Wealthpoint keeps just over 4 per cent of product commissions but will pare that back to under 4 per cent in a change that should see member firms collectively better-off by up to $1 million.

In a release, the group says it plans to reduce the co-op retention rate to about 3 per cent next year. Members also set to receive more commission share under a new cap on Wealthpoint-retained “financial support” from life and health insurers: any excess insurer-derived income above the cap will passed on to member businesses, the statement says.

Manning said Wealthpoint, which emerged out of the AMP NZ adviser body in 2019, now had the “real scale” to reduce member costs after the initial higher expense incurred in establishing a FAP-compliant network.” Click here to read more

In other news

Cigna: David Hadley appointed as Business Performance Manager

Cigna: James Dacombe appointed as South Island Senior Underwriter

Cigna: Natalija Talbot appointed as Senior Underwriter based in Taupo

Cigna: Rachel McBeath new distribution support senior specialist based in Christchurch

Cigna: Tom Marchant appointed as Senior Underwriter based in Wellington


Fidelity Life introduce new policy management system, and more daily news

Fidelity Life has announced the introduction of their new policy management system, Tahi. The launch is scheduled to roll out in phases beginning from 15 November and will be completely in place by February 2022. The first phase involves new business only, existing policies will gradually be transitioned from the current system.

Changes will include:

  • New digital customer product brochures
  • Combination of post and email correspondence
  • New reporting tools
  • Change to credit card process

From Monday 15 November we’ll be launching a new policy management system, called Tahi. It’ll be a phased launch, from mid-November 2021 through to February 2022, so there’ll be a couple of steps along the way.

There’s some great new functionality that will gradually be introduced but let’s start with the basics to get you going from day one. There’s a lot to take in so we’ll make this information available on Adviser Hub for your ongoing reference.

 

In other news

Cigna: Business Performance Manager role being advertised

nib: Sustainability Manager role being advertised

Wealthpoint: Wealthpoint appoints Independent Director

ASB: ASB data shows financial wellbeing improving but many 'just coping'

Accuro: Accuro celebrating 50th anniversary

Accuro 50th anniversary


Fidelity Life on understanding compliance, and more daily news

Fidelity Life has compiled information relating to the FMC Act and the obligations of advisers. The information is displayed in a one page document that outlines the compliance expectations of advisers and FAPs. A list of standard conditions of licensing, code of professional conduct for financial advice services, and disclosers are included.

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In other news

Fidelity Life: A- financial strength rating has been reaffirmed for the 25th consecutive year

Fidelity Life: North Island Accreditation workshops to commence. Workshops will help advisers get parts 1 and 2 of accreditation.

Wealthpoint: Broker Manager (Senior General Insurance Broker) advertised


Growing number of advisers taking a more holistic approach and more daily news

Professional IQ has reported that a growing number of advisers are taking a more holistic approach in their processes. Rod Severn, Professional IQ CEO has said that advisers are aware of the benefits of adopting more holistic approaches as it helps in accommodating the financial constraints clients are facing as a result of COVID-19.  Severn said that the adoption of a holistic approach means an adviser needs to spot areas that need more attention and refer clients to others with the necessary expertise. It has been reported that clients value a more holistic approach.

“Taking a “holistic approach” to client finances is becoming more important in light of the cashflow pressures faced by many as a result of COVID-19, and Professional IQ College CEO Rod Severn says more and more advisers are starting to see the value in utilising this method.

Severn says that a holistic view doesn’t mean advisers need to become “experts in all areas” - simply that they need to spot areas which may need attention, and to refer clients to other specialists where necessary. He says clients find a lot of comfort in working with an adviser who takes a 360-degree view of their finances, and who understands their position against a broader political and economic landscape.”

Severn noted that some advisers have expressed interest in completing additional strands as part of their Level 5 qualification while others have expressed interest in completing additional strands after completing their qualification as they see the value in diversifying their knowledge base.

“Severn says that some advisers have expressed interest in pursuing additional strands as part of their Level 5 qualification, and are seeing this as a step towards diversifying their advice capabilities. He says that, ultimately, a well-rounded approach will result in better client outcomes - something every adviser is focused on demonstrating to the regulators. 

“We’ve had some interest from advisers who want to do more,” Severn said.

“When they completed the qualification for the area that they specialise in, they’ve then come back and told us that they want to do an additional strand because they think they can use that in their business moving forward.” Click here to read more

nib: The Blues Coach, Leon MacDonald and Sky Sports presenter Kirstie Stanway joined mental resilience webinar

Partners Life: Partners Life will be sponsoring podcasts produced by Cure Kids

Fidelity Life: Adviser Development Manger role is being advertised

AIA: Senior Marketing Manager is being advertised

FSC: there is still a chance to register for the Generations conference

Wealthpoint: Wealthpoint creates new head of investments role