ClearView says advisers must petition for open approved product lists if they want to be viewed by consumers and regulators as fully-fledged professionals.
In an opinion piece published on sister publication ifa, ClearView general manager of distribution Christopher Blaxland-Walker said the FSC and its sympathisers still don’t see advisers as professionals and believe it’s acceptable to try and influence advice by restricting product choice.
Mr Blaxland-Walker said advisers must renounce the FSC’s draft APL standard.
“Anything short of vehement opposition of the FSC’s standard only reinforces the lie that advisers don’t have the ability, and shouldn’t have the authority, to choose from all 11 retail life insurers in the market,” he said.
“Silence effectively says that it’s okay for dealer groups to minimise and control product choice.”
After decades of examining policies, providing advice and dealing with insurance companies, advisers have earned the right to choose the most appropriate solutions for their clients, Mr Blaxland-Walker said.
However, this does not necessarily mean that advisers will recommend all 11 insurers.
“In reality, many advisers who already enjoy access to the entire market stick primarily to the handful of insurers they know through experience, will deliver great value and service, and pay claims,” Mr Blaxland-Walker said.
“If the industry is serious about delivering improved client outcomes, it must advocate for open risk APLs to give advisers genuine choice and the ability to act solely in their clients’ best interest.”