Insignia chief draws 'hard line' on NCAs giving retirement advice

Detailed summary

Insignia Financial chief executive Scott Hartley said he draws a hard line when it come to the new class of advisers (NCAs) giving retirement advice.

Insignia Financial chief executive Scott Hartley said he draws a hard line when it come to the new class of advisers (NCAs) giving retirement advice.

Speaking to advisers at the MLC Expand Adviser Roadshow in Sydney, Hartley said the NCA is misnamed.

Assistant treasurer Daniel Mulino announced the advice reforms in August, which will allow super funds and life insurers to use the NCAs to give members simpler, more affordable help with their retirement, without the cost of full personal advice.

"I think they're just misnamed. They shouldn't be called advisers. Adviser shouldn't be in the label of these people at all," Hartley said.

"I could live with financial consultant. I could live with perhaps financial coach, product representative - some of those labels. But when you put adviser in the label, I think it's misleading, and people would expect qualifications to come with that."

Hartley noted if industry funds want to give retirement advice, then they should employ properly qualified financial advisers.

"As long as it's labelled correctly, as long as it's limited - maybe investment choice, maybe insurance coverage - that's probably where it's going to land. We're probably going to have to live with that," Hartley said.

"But when it gets to retirement advice, it's a very hard line for me. There's a lot of danger in retirement advice. Mistakes can be made, and people can lose a lot of income as a result."

Hartley said NCAs would hold only minimal qualifications, comparable to the old RG 146 training standard, which he warned posed a real risk, particularly when it came to retirement advice.

Opening of the article, excerpted from Financial Standard. To read the rest, open the article on the publisher's site.