What the Royal Commission report means for advice

Alex Burke,  Senior Writer,  No More Practice Education

At long last, the final Royal Commission report has been released.

In the preamble, Commissioner Kenneth Hayne mused on how instances of misconduct revealed during the hearings were driven "not only by the relevant entity’s pursuit of profit but also by individuals’ pursuit of gain, whether in the form of remuneration for the individual or profit for the individual’s business."

This, he said, led a situation where "providing a service to customers was relegated to second place. Sales became all important."

"Those who dealt with customers became sellers," he added. "And the confusion of roles extended well beyond front line service staff. Advisers became sellers and sellers became advisers."

The findings and recommendations made in the report are extensive, so for this initial piece let’s focus on the implications for financial advice, bearing in mind one of Hayne’s stated beliefs: that it is “time to ignore the ghostly apparition of constitutional challenge conjured forth

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Russ McConachy

05/02/19

"If there is clear justification for retaining those commissions". Are you serious, Mr. Hayne? Are you not aware that this is the sole source of income for the thousands of traditional risk advisers providing excellent advice, ongoing policy reviews and claims management? Ceasing to pay us commission for our advice based on a few bad advisers suggests to me that perhaps lawyers should also not be paid for their services because of the criminals in their midst! This seems fair to me. What do you think?

Mateen Khan

06/02/19

Good

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