The COVID-19 crash has affected many Australians, and advisers haven’t been immune.
In order to shore up the adviser community throughout the country’s current health and economic crisis, the Association of Independent Financial Professionals (AIOFP) has suggested the ban on grandfathered commissions should be postponed for two years.
Making its suggestion in a submission to ASIC, the AIOFP said that the date should be pushed to 1 January 2023.
The submission said: “This will assist consumers and advisers to meet the proposed requirements within the client’s current review cycle and combat the unknown COVID-19 fallout confronting us all.”
As part of this, the AIOFP has also requested that ASIC stop what it perceives as being “its current activity of encouraging manufacturers to terminate grandfathered revenue before the legislated 1 January 2021.”
Further, the AIOFP argued that disclosure documents should be streamlined and that the tight deadlines for client fee opt-ins were currently impractical.
The AIOFP said it made sense “to have a fixed 12-month anniversary date for client renewal, but with flexibility to renew within three months of the anniversary date to cover unforeseen events like holidays, illness and pandemic situations.”
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