Commission disclosure a furphy, PAA says

In a submission to the Securities Commission on proposed disclosure regulations, the PAA says while remuneration methods should be disclosed, the actual amount insurance advisers get paid was irrelevant to consumers.

In its submission the PAA says "the key point is that an adviser should be required to disclose if they have any restrictions or incentives towards placing business with a certain provider."

"...the PAA has concerns about the ability of 'aligned advisers' to offer diverse options across several product lines when they are accountable to just one insurer/future QFE [Qualifying Financial Entity]. This may prove to be a bigger concern than commissions and fee disclosure," the submission document says.

The adviser industry body also slammed the Securities Commission proposal limiting the use of the terms 'independent' or 'unaligned' to those who do not receive commission, saying this could "potentially mislead customers".