Do you support the call for more prominent disclosure to clients of your commissions and other incentives?
- No (55%)
- Yes (42%)
- Not sure (3%)
Advisers are evenly split on the question of whether there should be more prominence given to the disclosure of life insurance commissions and other incentives.
As we go to press, 48 per cent of those taking our poll do not support more prominent remuneration disclosure, followed very closely by 45 per cent who do. The remaining 7 per cent are undecided.
This poll stems from the release this month of a discussion paper seeking industry feedback on how to deliver greater transparency and consumer understanding of the advice process (see: MBIE Seeking Feedback on Disclosure Requirements).
…ensuring important information is available and easy to understand is crucial
In releasing the discussion paper, Commerce and Consumer Affaris Minister Kris Faafoi, noted, “I want consumers to make the best decisions they can during their financial planning so ensuring important information is available and easy to understand is crucial.”
Based on other public statements made by the Minister and on feedback provided to RiskinfoNZ by key industry stakeholders, it appears the Minister’s agenda leans more towards the need for open-ness, transparency and greater consumer access to quality advice than it does towards the nature and construct of adviser remuneration itself (as long as the client’s best interests are served).
Compromise is a common factor in the resolution of most public debates and, just perhaps, pushing back against the call for greater transparency on adviser remuneration and other incentives may take attention away from other, possibly more critical, issues that are or will soon be sweeping the NZ advice sector.