IAM SRTing a New Thread for New Beginnings, page-14

Hi Bernsta,

Having spoken to people working in the retail life insurance world, that now seems to have stalled, waiting for the election and any changes relating to this needs to be passed through the senate. Some advisers I have spoken having a substantial retail risk business aren't necessarily phased as their revenue stream becomes more substantial over a period of time on a hybrid/level commission basis. There are quite a few still traumatised over the thought of moving away from 110%/120% upfront and 10% trail. I don't think fee for service works for individual planners so I can empathise with your position.

IMO the banks, esp CBA, wouldn't be too phased about a govt going after them. These scandals are almost cyclical and the banks over the years have proven themselves to be Teflon. The Comminsure four corners scandal is a beat-up, notice how no other Life company piped up. Let's not waste tax payers money by going after them, issue them a fine, they pay, and everyone moves on.

What I think will have a greater impact is the crackdown on the concessional taxing of super conts. This may have some impact to planner revenues specialising in high net worth clients. Will also have an impact to SMSFs so may be flow on effects to accountancy practices.

You would think Malcom would be more friendly to the industry. Don't know how common knowledge it is on these boards, we have all probably read about Malcom's exploits as KP's lawyer, then head honcho at Goldman Sachs, but Malcom was also once Chairman of Centric Wealth (now owned by the Findex Group) before joining parliament.