QFE will help write business: Sovereign
Sovereign rolled out its QFE this week and said that it expects around 85% of its new adviser distributed business will come from advisers who become members.
Thursday, March 17th 2011, 6:14PM 
11 Comments
Sovereign chief executive Charles Anderson says advisers can apply to join the QFE if they are prepared to use Sovereign's programmes and processes.
They will also have to agree to regular compliance audits and professional development reviews, maintain professional indemnity cover and suitable marketing controls
He says advisers who "are uncertain about how the regulations will effect them personally" can apply to join the QFE for protection.
However he stresses that advisers have to apply to join the QFE.
He expects some advisers who apply won't meet the standards set.
"If you're a maverick adviser then Sovereign isn't the appropriate home," he says.
Anderson is pitching the Sovereign QFE as being one of the best in the market and will provide advisers with tools and services to help them grow their businesses.
However as it is early days with QFEs it is "difficult to do competitive analysis".
He says these advisers will have to operate under the rules set by the QFE which includes how they write business, run their business and they would have to use the QFE's online planning tools.
The QFE has an arrangement with the ISO as its disputes resolution scheme. Sovereign would help any member if they end up in a dispute. This help would include reviewing files, making submissions and helping to find a resolution.
The QFE, since it takes responsibility for its members, would make any settlement. However there was an onus on the adviser to follow the QFE's rules and procedures.
While Anderson expects around 85% of Sovereign's business to come through QFE members that is the same quota as what Sovnet advisers adhere to at the moment.
The QFE has a recommended list of other products its members can use, however there are some limitations.
He says the list can't be too big as Sovereign is taking responsibility for the products QFE members use.
"We have to control the quality and process," he says. "If (the product list) was any wider our liability would balloon out."
It also puts the onus on Sovereign to have good products.
Anderson says there are around 650 advisers in Sovnet at the moment. He says around 230 have applied to join the QFE. Some can't join because they have decided to go down the AFA route while others will just remain in Sovnet.
Most of the advisers who have applied are ones who are considered some of the bigger risk writers for Sovereign.
He expects there to be around 300 members by July 1 when the regulatory regime starts.
The QFE will mainly appeal to advisers who write risk business. Sovereign hasn't decided yet whether it will include KiwiSaver as a recommended product in the QFE.
Anderson expects that the QFE will help Sovereign write more business, but not immediately.
He says because advisers will end up doing better needs analysis with clients than they do at the moment there will be the opportunity to cross-sell products.
| « Insurance companies help Chch advisers | December life insurance sales flatline » |
Special Offers
Comments from our readers
It clearly states that a that Kiwisaver products are to be cat 1 products and only for AFA advisors.
If a QFE adviser can still market a Kiwisaver product and that adviser is not a full AFA advisor then it just makes a mockery out of this whole regulation process.
The government needs to draw a line to make this black and white NOT GREY.
to protect and grow your own business - stay your own business - no need to get suckered in by the aggregators who love to line their own pocket.
Regulation is fairly straight forward if you are to be an RFA (or AFA for that matter). Save the money you send to these self-promoting heroes of the adviser and use it on your own self-development.
No QFE is going to allow you to be yourself - they aren't allowed - so if you want to remain personable to your clients stay clear.
And Murray - before you state fact could you please learn to undertsand the regulations before commenting.
The stated goal of regulation was to improve industry standards and the advice given to clients. Personally I think that QFE’s overtime will actually limit the consumer’s choice as their adviser will be pushed to sell only what the QFE wants them to. This then appears to be a step in the wrong direction.
The last part of your comment is the whole point that i am trying to state
In Murray's defense, those who are attacking him about Kiwisaver in QFE need to go re-read your lessons....
QFE's can advise on Cat1 products only if they are promoted AND issued by the QFE itself.
Sovereign don't issue their own Kiwisaver, it's issued via ASB therefore Sovereign QFE cannot give advice on it.
Commenting is closed
|
|
Printable version |
|
Email to a friend |
