tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, March 29th, 10:40AM

Insurance

rss
Latest Headlines

PAA offers FSC support

Mud-slinging between different factions of the financial services industry is damaging and could harm its reputation, the chairman of the Professional Advisers Association says.

Thursday, November 19th 2015, 6:00AM

by Susan Edmunds

It has been suggested the PAA could be look to take on some of the life insurance representation functions of the Financial Services Council if that organisation were to disband.

PAA chairman Bruce Cortesi said it had no announcement or changes to reveal at present.

But he said the ructions occurring within the FSC were not serving the industry well.

Insurers AIA and Partners Life have both tendered their resignations from the FSC in protest over the report it commissioned from actuaries Melville Jessup Weaver, which is understood to recommend large-scale commission reduction.

Both AIA and Partners Life pay significant upfront commission to independent financial advisers.

Cortesi said signs of industry disagreement did not send the right message about the industry to the Commerce Minister or the regulators, particularly as the Financial Advisers Act is under way.

“This is the last thing we want to see. It’s unfortunate,” he said. “There are an awful lot of people in the industry mudslinging and we’ve got to step back and think is this the message we want to get out there? The Minister is giving us a chance to resolve the issues of the industry ourselves and at the moment I don’t even know that we are capable of doing that. But if we could then the possibilities are huge for the industry.”

He said he questioned the number of appointments of third parties in a range of parts of the industry, who had been tasked with identifying its problems and come up with a solution. “Who is the expert on the industry? We are. It seems odd to spend money asking other people to tell us what the problem is. We know what it is, let’s get on with it.”

Cortesi said he had his own “radical” ideas to revamp adviser remuneration and allow them to charge clients a fee. He said he could not disclose those plans yet but was talking to product providers and would discuss them with the IFA.

In the meantime, he said the PAA was offering its support to the FSC.

“We are not in the space where want to make any announcement or any changes. Our role doesn’t change.”

Tags: FSC PAA

« FSC launches income protection campaignAsteron quits FSC »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Partners helps fund depression recovery centre
New Whakamātūtū Wellington Depression Recovery Centre gets financial boost from Partners Life.

AIA adds cover for prophylactic surgery following cancer
AIA makes changes to policies and adds preventative surgery for several types of cancer.

Chubb appoints David Morrow as Country President for New Zealand
Chubb has appointed David Morrow as Country President for New Zealand.

nib adds specialist skills to its board
Two new board appointments at health insurer nib add new perspectives, chairman says.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x