New research has found that a significant number of employees within the risk advice industry would be without a job if remuneration structures proposed in the Trowbridge Report were introduced.
Following recent uproar in the risk advice community concerning the Trowbridge recommendations, Perera Crowther Financial Services conducted a survey to better understand the effects the recommendations will have on advisers’ businesses.
The survey, completed by 308 risk advice business owners, found 178 small businesses would be forced to close their business either completely or partially if a level commissions structure and initial advice payment of $1,200 were to be introduced.
With the complete or partial closure of these businesses, a total of 771 advisers and staff members would be made redundant, the survey claimed.
Providing comments with their responses, one adviser said they would sell their business or “restrict the number and type of client” they give advice to.
This was echoed by another adviser who highlighted that they would place less emphasis on offering risk insurance to clients or even focus on “lower value premium clients”.
“As a risk only specialist there will be a significant income reduction from new business. I will have to consider what staff I will be able to retain,” another adviser said.
Speaking to Risk Adviser, principal Sam Perera said he plans to release the results to all respondents so they can take them to their respective federal member for parliament and continue campaigning.
Mr Perera added that he will also take the results to his federal member, social services minister Scott Morrison, and including Assistant Treasurer Josh Frydenberg to further raise awareness of the implications these recommendations could have for business owners.