Advisers who do not support the government’s Life Insurance Framework should remember the role played by their two largest representative associations, says the AIOFP.
Speaking at the Association of Independently Owned Financial Professionals (AIOFP) offshore conference in Tokyo this week, executive director Peter Johnston said advisers should take heed of the political process that led to the government’s latest remuneration reforms.
"Never forget the Life Insurance Framework and how advisers were sold out,” Mr Johnston implored delegates.
“The AFA, FPA and FSC formed a political alliance and it wasn’t doing the bidding of advisers and clients, but of the institutions and life insurers.”
The AIOFP turned down an offer to take part in the negotiations as it didn’t believe taking a seat at the table alongside the insurers and institutions was in the interests of members or their clients, Mr Johnston revealed.
"We thought that 80 or 90 per cent upfront would have been a much better outcome for advisers and clients than where the AFA-FSC negotiations ended up,” he said.
"Risk advisers should be thinking about whether their association really acted in their interests or not during this process."