AIOFP dismisses FSC on life/risk commissions

Mike Taylor

Managing Editor and Publisher

24 October 2022

Calls by the Financial Services Council (FSC) for the retention of commissions for life/risk advisers have been derided by the Association of Independently Owned Financial Professionals (AIOFP) which has pointed out to members it blames the FSC for delivering the Life Insurance Framework (LIF).

In a message to members, AIOFP executive director, Peter Johnston described the FSC’s position on the importance of retaining life/risk commissions “a pathetic joke”.

Johnston claimed the FSC was the body which had supported the former Minister for Financial Services, Kelly O’Dwyer in implementing the LIF legislation which saw commissions reduced from 120% to 60%.

He said that the FSC had also support the Financial Adviser Standards and Ethics Authority (FASEA) regime, more compliance and the removal of grandfathered revenue.

The FSC last week released research undertaken by NMG Consulting which found that commissions on advised life insurance “remain an important component of adviser remuneration” with less than 10% of life insurance advice being placed without a commission.